Gold Prices Tumble on Hawkish Fed Bets

Gold prices are poised to fall for the week as the US dollar strengthens and expectations of higher interest rates from the Federal Reserve weigh on demand.

The spot price of gold has dropped by 0.2% to $4,270.40 an ounce, putting it more than 2% lower for the week.

This decline is largely due to the rise in US Treasury yields and the dollar's gain, making gold less attractive to buyers holding other currencies.

Kelvin Wong, senior market analyst at OANDA, stated that 'Focus will definitely continue to be on the interest rate situation. When we start to see markets pricing in a much more hawkish Fed, it strengthens the dollar and is negative for gold.'