Gold prices were mostly unchanged on Friday and ready for a weekly loss, pressured by expectations of higher interest rates for a longer period by the U.S. Federal Reserve.
Spot gold was steady at $1,776.85 U.S. per ounce early Friday, having fallen more than 1% this week. U.S. gold futures were down 0.1% at $1,786.80.
The Fed on Wednesday raised interest rates by 50 basis points as expected, but Fed Chair Jerome Powell said the central bank would deliver more rate hikes next year even as the economy slips towards a recession.
Although gold is traditionally known as a hedge against inflation and economic uncertainties, higher interest rates tend to dim the bullion’s appeal as it increases the opportunity cost of holding the non-yielding metal.
Spot silver rose 0.1% to $23.06 U.S., platinum lost 0.1% to $1,005.14 U.S. and palladium was down 0.2% to $1,787.50 U.S.