Gold steady despite headwinds from rate hikes; week flat

As intense Fed selling pressure abated, gold prices were poised to end the week roughly flat.

This week, after the Fed raised interest rates and adopted a more hawkish tone than anticipated, the price of gold and silver showed a surprising degree of resiliency.

This week, gold prices fell significantly below $1,700, a critical support level they had breached. This triggered bargaining for gold.

At 19:40 EDT, spot gold was approximately $1,672.37 an ounce and gold futures were around $1,680. (23:40 GMT). The dollar's decline from its 20-year high on Thursday also helped prices.

This year, rising U.S. interest rates have strengthened the currency and prevented gold from reaching record highs.

The Fed's proactive actions have fueled optimism that gold will regain its role as a safe haven. Traders also anticipate that the Fed would reduce interest rates at the end of 2023 to mitigate economic disruptions caused by high rates.

"The Fed's hawkish predictions indicate a bleak economic picture, which could drive gold's safe-haven function. This inflation battle would be unpleasant for the economy, but the Fed may cease hiking interest rates in February, economists at Oanda warned this week. Additionally, they suggested gold's base.

Copper futures rose 0.2% to $3.4690 per pound on Friday.

As speculators expected that rising interest rates would have a negative impact on industrial activity, prices of the red metal were set to conclude the week 1.4% lower.

This week, the Bank of England and the central banks of Europe and Asia also increased interest rates to combat inflation.