Gold prices fell on Friday, hitting a two-year low as expectations of higher U.S. interest rates dented demand for the metal.Image Credit: Google
While palladium surged to an all-time high on supply concerns.Image Credit: Google
Spot gold was down 0.7 percent at $1,244 an ounce by 1413 GMT. U.S. gold futures were also down 0.7 percent at $1,245 per ounce.Image Credit: Google
Gold has come under pressure this week as the dollar strengthened.Image Credit: Google
U.S. Treasury yields hit new highs on expectations that the Federal Reserve will raise interest rates next month.Image Credit: Google
Higher rates would boost the dollar and push up bond yields, making gold less attractive as it pays no interest.Image Credit: Google
"The market is worried about further Fed rate hikes and a stronger dollar," said Julius Baer analyst Carsten Menke.Image Credit: Google
"With real rates in positive territory, there is no longer any incentive to hold onto gold."Image Credit: Google
Gold prices are down about 9 percent so far this year, on track for their biggest annual decline since 2013.
Palladium, meanwhile, jumped to a record high of $1,096.50 an ounce, up 1.8 percent on the day and more than 60 percent higher this year.