* The dollar index fell 0.4% after hitting a new 20-year high, making gold cheaper for holders of other currencies. However, the greenback was headed for its fifth weekly gain, while benchmark US Treasury bond yields hovered near the key 3% level.
* “Gold is facing strong headwinds, despite strong inflation, as the dollar index has hit multi-decade highs and 10-year bonds are back above the 3% level,” he said. independent analyst Ross Norman.
* European stocks headed for their worst week in two months as investors expect further rate hikes will be needed to curb inflation.
* Although gold is perceived as a hedge against inflation, rising rates in the US raise the opportunity cost of holding bullion, which does not earn interest.
* In other precious metals, silver was down 0.5% at $22.39 an ounce; platinum was down 2.6% at $954.94; and palladium was down 2.3% at $2,137.38.
By Eileen Soreng
Source: Ambito
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