Investing.com - Gold prices bounced off the previous session's 10-month lows on Friday, but the precious metal still posted its sixth straight weekly decline as expectations for higher U.S. interest rates in the months ahead continued to weigh.
Gold for February delivery on the Comex division of the New York Mercantile Exchange tacked on $7.60, or 0.67%, to end the week at $1,137.40 a troy ounce. A day earlier, prices sank to $1,124.30, a level not seen since February 2.
For the week, gold futures lost $24.10, or 2.1%, as the U.S. dollar soared after the Federal Reserve hiked interest rates and signaled it expects to raise rates more quickly than previously anticipated in 2017.
The U.S. central bank predicted it would raise interest rates three times in 2017, up from the two hikes predicted in September.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 102.92 late Friday, not far from Thursday's 14-year high of 103.55.
Both a strong dollar and higher interest rates are typically bearish for gold, which is denominated in dollars and struggles to compete with yield-bearing assets when borrowing costs rise.
Gold prices have slumped since Donald Trump was elected president as rising U.S. bond yields and a rally in stocks markets have damped its appeal.
Also on the Comex, silver futures for March delivery climbed 25.7 cents, or 1.6%, on Friday to settle at $16.21 a troy ounce. The contract fell to a six-month low of $15.92 in the prior session. On the week, silver lost 74.4 cents, or 4.4%.
Elsewhere in metals trading, copper for March delivery slumped 3.6 cents, or 1.4%, on Friday to end at $2.564 a pound after touching a daily low of $2.543, a level not seen since November 30.
In the week ahead, market players will be eyeing the release of Thursday’s final reading on U.S. third quarter gross domestic product for fresh indications on the strength of the economy and further hints on the future path of monetary policy.
Meanwhile, market participants will be awaiting a monetary policy announcement from the Bank of Japan on Tuesday, with most investors expecting the bank to hold its negative interest rates and 10-year government bond yield target steady.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, December 19
In the euro zone, the Ifo Institute is to report on German business climate.
Tuesday, December 20
The Reserve Bank of Australia is to publish the minutes of its latest monetary policy meeting, giving investors insight into how officials view the economy and their policy options.
The Bank of Japan is to announce its benchmark interest rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision. The announcement is to be followed by a press conference.
Wednesday, December 21
The U.S. is to release data on existing home sales.
Thursday, December 22
The U.S. is to produce data on third quarter economic growth, initial jobless claims, durable goods orders and personal spending.
Friday, December 23
The U.S. is to round up the week with data on new home sales and consumer sentiment.