• Gold down almost 3% this week
  • Palladium hits lowest level since 2018
  • Dollar, Treasury Yields Eye Weekly Gains

Nov 10 (Reuters) – Gold fell more than 1% on Friday and was heading for a second straight weekly decline as safe-haven demand eased amid Federal Reserve Chairman Jerome’s hawkish stance Powell, accentuated the decline.

Palladium fell to a five-year low below $1,000 an ounce, accelerating a pullback triggered by expectations of surpluses from the rapid spread of electric vehicles and automakers choosing cheaper platinum for their automotive catalysts.

Spot gold fell 1.1% to $1,936.09 an ounce by 2:38 p.m. ET (19:38 GMT) and was down 2.8% in its worst week in six. U.S. gold futures fell 1.6% to $1,937.70.

Silver fell 1.8% to $22.21.

“Powell’s hawkishness is the main reason for gold’s weakness this week. It is also undermined by investors’ improving risk appetite in recent weeks,” said Fawad Razaqzada, an analyst at market at City Index.

Bullion has lost about $70 since hitting levels above $2,000 last week due to escalating tensions in the Middle East.

Reuters Charts

U.S. Federal Reserve officials, including Powell, said on Thursday they were still unsure whether interest rates were high enough to end the battle against inflation.

The benchmark 10-year U.S. Treasury yield and dollar index (.DXY) are headed for weekly gains, making yieldless gold less attractive to investors.

“Gold will continue to trade sideways and lower in the near term unless we see an escalation in geopolitical events, a weak U.S. economic report, or the Fed suggests it is finished raising its rate,” said Jim Wyckoff, principal analyst at Kitco Metals.

A major festival has boosted demand for physical gold in India, but purchases were reported to be slightly lower than last year as rising prices put off some customers.

Platinum lost 2% to $842.34, on track for its worst week since mid-2021. Palladium slipped 2.8% to $964.25.

Both metals are used by automobile manufacturers in devices intended to reduce engine emissions.

Reporting by Ashitha Shivaprasad and Anushree Mukherjee in Bangalore; Editing by Tasim Zahid and Shilpi Majumdar

Our Standards: The Thomson Reuters Trust Principles.

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