26.02.202109:14:00UTC+00Gold Drifts Lower On Dollar Strength

Gold prices fell on Friday to hover near one-week lows as the dollar strengthened on hopes of faster economic recovery and rising U.S. bond yields.

Spot gold dipped 0.4 percent to $1,764.04 per ounce, marking its lowest level since Feb. 19. Prices were down about 1 percent for the week and over 4 percent for the month so far. U.S. gold futures were down 0.8 percent at $1,760.75.

Gold prices were headed for a second straight weekly and monthly decline as a surge in government bond yields stoked fears of inflation.

Markets were hedging the risk of an earlier rate hike from the Federal Reserve, despite officials signaling earlier in the week that they don't expect to raise interest rates.

Stronger-than-expected U.S. economic data released overnight also added to the fears that the Fed could withdraw stimulus sooner than anticipated.

Meanwhile, speculation is rife that U.S. President Joe Biden's fiscal spending package will not be as large as the proposed $1.9 trillion.

Reflecting investor sentiment, holdings of the largest gold-backed exchange-traded-fund (ETF), New York's SPDR Gold Trust, fell 0.6 percent on Thursday to their lowest since May 2020.



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