Gold up, but set for the worst week since the Hawkish Fed end of March 2020

Gold rose in Asia on Friday morning. However, U.S. investors continue to digest the Federal Reserve’s surprisingly bad policy decision, the yellow metal is set to close at its lowest level since March 2020.

Gold futures rose 0.60% to $ 1,785.45.

The dollar fell on Friday after hitting a two-month high but went into its best week in almost nine months. The key 10-year yield was firmly above 1.50%.

Federal officials point out that property tapping discussions have already begun as it delivered its policy decision earlier this week. The central bank is raising interest rates higher than expected, with two hikes planned for the end of 2023.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.4% to 1,041.99 tonnes on Thursday, signaling investor sentiment.

In the Asia-Pacific region, the Bank of Japan issued its own policy decision the previous day. As widely expected, the central bank maintained a rate of -0.10%.

Meanwhile, the U.S. Talks between President Joe Biden and Chinese Representative Xi Jinping are said to be under consideration. U.S.-China tensions have been rising since the Federal Communications Commission voted 4 to 0 on Thursday.

Among other precious metals, silver and palladium rose 0.7% and platinum 1%.

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