Gold Slides Amid Rate Hike Expectations and Soaring Treasury Yields

Gold prices dropped on Friday and were poised for their first weekly decline in several weeks. The metal's value is being pressured by rising U.S. Treasury yields and expectations of further Federal Reserve rate hikes. Spot gold fell 0.1% to $4,274.18 per ounce, down about 2.4% for the week.

The increased opportunity cost of holding non-yielding gold has traders seeking alternative investments. According to CME's FedWatch tool, there is a 64% chance of a rate hike in October and a 93% chance of another in December. This has led to higher yields on U.S. Treasury bonds.

Silver prices also declined, falling 0.1% to $63.84 per ounce. Platinum rose 0.4% to $1,755.25 per ounce, while palladium dropped 1.6% to $1,252.62 per ounce.