Gold Up, But Set for Worst Week Since March 2020 Over Hawkish Fed Decision By

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By Gina Lee – Gold was up on Friday morning in Asia. However, the yellow metal is set to close the week at its lowest level since March 2020 as investors continued to digest the U.S. Federal Reserve’s surprisingly hawkish .

were up 0.60% to $1,785.45 by 12:14 AM ET (4:14 AM GMT).

The inched down on Friday after hitting a two-month high but was headed for its best week in nearly nine months. The benchmark 10-year yield held firm above 1.50%.

Fed officials hinted that asset tapering discussions have already begun as it handed down its policy decision earlier in the week. The Fed will also likely raise interest rates earlier than expected, with two hikes planned by the end of 2023.

In an indication of investor sentiment, SPDR Gold Trust (P:), the largest gold-backed exchange-traded fund globally, said its holdings fell 0.4% to 1,041.99 tons on Thursday.

In the Asia Pacific, the handed down its own policy decision earlier in the day. The maintained the rate at -0.10%, as widely expected.

Meanwhile, talks between U.S. President Joe Biden and Chinese counterpart Xi Jinping are reportedly being considered. U.S.-China tensions are rising after the Federal Communications Commission voted 4 to 0 on Thursday to ban products from Huawei Technologies Co. and four other Chinese electronics companies.

In other precious metals, silver and palladium gained 0.7% while platinum climbed 1%.

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