Gold Falls for Second Straight Week on Higher Rate Expectations

Gold recorded its second straight weekly loss as investors adjusted positions amid stronger inflation readings and shifting rate forecasts. 40 per ounce on Friday. S. consumer price data came in hotter than expected.

Traders increased bets on Federal Reserve rate hikes after the latest inflation figures. Higher interest rates typically raise the opportunity cost of holding non-yielding assets such as gold. Futures markets now price in a greater chance of at least one additional quarter-point increase by year-end. Treasury yields rose in tandem with the revised outlook.

The metal traded in a narrow range during the final session, finding support near $2,310 and resistance around $2,350. Year-to-date, gold remains up roughly 12 percent despite the recent pullback. Volume in gold exchange-traded funds declined for the week, reflecting reduced speculative interest.