Gold is preparing for its biggest weekly loss since February as many central banks hiked interest rates this week and signaled that interest rates could remain high for a long time. On the gram gold side, a new historical peak was seen with the rise of the dollar rate.
Gold is poised for its biggest weekly loss since early February after major central banks signaled that they needed to hold their hawk stances longer to curb inflation.
Spot gold is trading at $1,915 an ounce. On the gram gold side, the record series continues.
Gram gold, which is calculated over ounce gold and interbank Dollar/TL rate, reached its new historical peak by rising $63.22 with the dollar rate seeing the level of 25.73. Gram gold retraces after the record and finds buyers at $62.86.
The precious metal was flat after losing 2.2 percent this week. Fed Chairman Jerome Powell reiterated on Thursday that one or two more rate hikes will be needed this year.
After these explanations, two-year bond yields hit the highest level in three months, which is considered a negative factor for gold, which does not yield interest.
In Europe, interest rate hike decisions continue to come. The Bank of England and the Bank of Norway stepped up their tightening with half a point rate moves on Thursday.
These decisions follow the European Central Bank, which increased borrowing costs last week and signaled that it will likely make another increase in July.
The precious metal has lost nearly 7 percent since it approached a record high in late May. Although rising interest rates and the easing of the regional banking crisis in the USA are negative for the outlook of gold, it is evaluated that the possibility of a recession originating from the Fed may offer some support.