Gold Rallies, But Weekly Loss Looms as Fed Rate Hikes Weigh

Gold prices rose on Friday but are still on track for a weekly loss. The precious metal has been weighed down by rising US Treasury yields and growing expectations of Federal Reserve rate hikes.

The Fed raised interest rates last week, its first hike in three years, and signaled more increases to come. Traders are pricing in a 71% chance of an October hike and a 95% chance of an increase in December.

This has dampened demand for gold as investors shift to yield-bearing assets. Despite the decline, some analysts see potential for a strong fourth-quarter recovery if macroeconomic winds shift.