Gold Hits One-Week Low As U.S. Dollar Rebounds

Gold prices fell to a one-week low last week and are on track for a weekly dip, weighed down by a strong dollar and an uptick in US bond yields.

Photo Insert: Spot gold was 0.3% lower at $2,010.57 per ounce by 11:40 a.m. EDT (1540 GMT), after falling as much as 0.7% earlier in the session.

Spot gold was 0.3% lower at $2,010.57 per ounce by 11:40 a.m. EDT (1540 GMT) on Friday, after falling as much as 0.7% earlier in the session, Deep Kaushik Vakil reported for Reuters.

US gold futures fell 0.2% to $2,015.80.

The dollar rose to a one-month peak and is heading for its biggest weekly gain since February, making bullion less attractive for buyers holding other currencies. Higher 10-year Treasury yields further dimmed zero-interest bullion's appeal. Spot silver fell 1.3% to $23.86 per ounce, down about 7% for its worst week in seven months.

Safe-haven bullion tends to gain during times of economic or financial uncertainty.

The bullish sentiment in the gold market still stands strong over expectations of the Fed cutting rates later this year, said Lukman Otunuga, a senior research analyst at FXTM, adding that traders have practically priced in a 25-basis-point cut by September.

Fed Governor Michelle Bowman, however, reiterated the central bank's stance on raising rates if necessary to fight still-high inflation.

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