GLDM - Gold ends the week below $2000 as Fed officials show support for more rate hikes

2023-04-21 17:30:06 ET

Gold fell sharply Friday and posted its worst week since February, as hawkish remarks by Federal Reserve officials seemed to raise the likelihood for at least one more interest rate hike.

Cleveland Fed President Loretta Mester was the latest to state her support for another rate hike, saying policy needs to move somewhat further into tightening territory with the fed funds rate above 5%.

Front-month Comex gold for April delivery closed -1.4% Friday to end the week down 1.1% at $1,979.50/oz, a three-week low and its largest one-week net and percentage decline since the week ending February 24.

Front-month April Comex silver fell 1.4% for the week to settle at $25.053/oz, snapping a five-week winning streak.

ETFs: ( NYSEARCA: GLD ), ( NYSEARCA: GDX ), ( GDXJ ), ( IAU ), ( NUGT ), ( PHYS ), ( GLDM ), ( AAAU ), ( SGOL ), ( BAR ), ( OUNZ ), ( FOLD ), ( SLV ), ( PSLV ), ( SIVR ), ( SIL ), ( SILJ ), ( SLVP )

While a Fed rate hike initially would hurt gold's appeal, an eventual pause should send gold to all-time highs, according to RJO Futures analyst Bob Haberkorn, saying " the Fed has a breaking point where they can't go any higher on rates without doing significant damage to the economy."

A week ago, gold prices pushed past $2,000 to their highest levels of the year .

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