Gold Has the Worst Week in 2 Months as US Yields Hit 14-Year High

The dollar is stealing all the shine from safe havens and preventing the real precious metal, gold, from shining.

The December gold futures contract on the New York Comex settled down $28.10, or 1.7%, at $1,648.90 an ounce after hitting a session low of $1,646.15. For the week, it lost just over $60, or 3.5%. The spot price of bullion, which is more closely followed by some traders than futures, was at $1,645.24 as of 14:00 ET (18:00 GMT) after falling to $1,640.71 at midday. Bulls in the space had some good luck before gold broke below key support at $1,650 on Thursday, as the dollar's slide on rumors of peak U.S. inflation helped the yellow metal recoup almost all of its losses on the day. But gold selling resumed on Friday as the Dollar Index rose for the seventh time in eight days. The index, which measures the dollar against the euro, yen, sterling, Canadian dollar, Swedish krona and Swiss franc, hit a session high of 113.30. Analysts said technical charts showed that the 120 level was very likely for the Dollar Index. Meanwhile, bond yields compared to the 10-year Treasury note hit a 14-year high of 4.06%. The dollar and yields have been the main winners in the Fed's campaign against inflation as the central bank has raised interest rates by 300 basis points this year and looks set to raise them by another 125 basis points before the end of the year. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!