Gold Prices Slide as Treasury Yields Climb and Rate Hike Expectations Build

Gold prices are down more than two percent for the week as investors weigh the opportunity cost of holding gold against rising Treasury yields and expectations of further interest rate hikes.

The yellow metal traded at $4,291.06 per ounce on Friday, up 0.3 percent from Thursday's low but still below its opening price for the week. U.S. gold futures rose 0.7 percent to $4,326.60.

Nitesh Shah, commodities analyst at WisdomTree, notes that persistent inflationary pressures and rising energy costs are driving up the chance of further rate hikes by the Federal Reserve.