Gold prices rose slightly on Friday but ended the week lower, suppressed by rising U.S. bond yields and hawkish expectations from the Fed.

Gold rose slightly on Friday (25th). (Reuters photo)

[Financial Channel/Comprehensive Report] Market concerns about continued high inflation, hawkish signals from Federal Reserve (Fed) officials, and higher U.S. government bond yields have weakened the appeal of gold. Gold rose slightly on Friday (25th), but closed in the black this week. The price of gold is currently down about 19% from the intraday high on February 27th.

Spot gold rose 0.1% to $4,282.98 an ounce; U.S. gold futures rose 0.5% to $4,321.20 an ounce.

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Gold fell 2.1% this week. Han Tan, chief market analyst at Bybit, said: "U.S. Treasury yields continue to soar, causing gold prices to close in the black in four of the past five weeks." The U.S. benchmark 10-year Treasury bond yield rose to a 19-year high.

"The non-yielding precious metal is being hit by multiple headwinds, including rising inflation risks, a runaway surge in U.S. bond yields and a hawkish Fed," Han Tan said.

The Fed raised interest rates by 1 point (25 basis points) last week, the first rate increase in three years. According to the CME Group's FedWatch tool, traders are currently betting on a 66% chance of a rate hike in October and a 93% chance of a December rate hike.

On the other hand, rising energy prices in the United States since the outbreak of the war with Iran have increased market concerns about inflation, forcing central banks to adopt a tighter policy framework to curb price pressures.

Other precious metals trading:

Spot silver rose 0.5% to $64.26 an ounce.

Spot platinum rose 1.7% to $1,780.28 an ounce.

Spot palladium fell 0.3% to $1,270.30 an ounce, with all three closing in the black for the week.

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