Gold futures were higher 0.26% to $1,797.70 by 10:53 PM ET (3:53 AM GMT). Nevertheless, gold fell under the $1,800 mark and dropped nearly 2% for the week to date, the worst fall after Nov. 26.
The dollar usually moves inversely to gold. It crawled down on Friday but traded near its highest level after July 2020.
The ripple effect from the Fed’s hawkish turn in its latest policy determination, handed down on Wednesday, persists. With anticipations of interest rate hikes sky-high, markets are now pricing in five to six hikes from the Fed in 2022.
U.S. data also supported investor sentiment that showed the GDP grew a better-than-expected 6.9% quarter-on-quarter in the fourth quarter of 2021.
Central Banks Decision Awaited
Other central banks passing down their policy decisions in the following week enclose the Bank of England, the European Central Bank, and the Reserve Bank of Australia.
Nevertheless, a Reuters survey warned that gold should drift downward in 2022 and 2023 as central banks hike interest rates, lifting bond yields and dimming the appeal of non-yielding bullion.
On the supply side, Swiss customs data revealed that its gold exports in 2021 rose to their highest after 2018. This was supported by demand in China and India, two of the biggest consumer markets recovering from coronavirus.
In other precious metals, silver dropped down 0.2%. Platinum crept up 0.1%, and palladium remained intact at $2,375.18.