Gold Futures Settle Sharply Lower As Dollar, Bond Yields Soar

Gold prices fell on Friday as the dollar soared to a new two-decade high, extending recent gains following an aggressive rate hike by the Federal Reserve and the Fed Chair Powell's comments that signaled further sharp increases in rate in the coming months.

The Federal Reserve has signaled a longer tightening cycle to get inflation back under control.

The Fed's new projections showed its policy rate rising to 4.4% by year-end, before peaking at 4.6% in 2023.

The sharp interest rate hikes by the Fed, and several other central banks including the Bank of England and the Swiss National Bank. have raised concerns the global economy will slip into a recession.

The dollar index zoomed to 112.89, gaining about 1.4%. The yield on long term U.S. 10-year Treasury Note hit 12-1/2 year highs, moving past 3.8%.

Gold futures for December ended lower by $25.50 or about 1.5% at $1,655.60 an ounce, the lowest settlement since April 2020. Gold futures shed about 1.7% in the week.

Silver futures for December ended down by $0.707 at $18.910 an ounce, while Copper futures for December settled at $3.3430 per pound, down $0.1280 from the previous close.

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