Gold Prices Tumble Amid Rate Hike Expectations

Gold prices slipped on Friday and are headed for a weekly decline as investors weigh higher U.S. Treasury yields and expectations of more rate hikes from the Federal Reserve.

The spot price of gold fell 0.1% to $4,274.18 per ounce, down about 2.4% for the week, according to Reuters.

U.S. gold futures rose 0.3% to $4,310.80, while silver prices dropped 0.1% to $63.84.

The rise in yields increases the opportunity cost of holding non-yielding assets like gold, making other investments more attractive.

Traders see a 64% chance of a rate hike in October and a 93% chance of another in December, according to CME's FedWatch tool.