Gold recorded a fourth consecutive weekly loss, falling 3.37%, under pressure from several factors, including signals from the US Federal Reserve pointing to a possible interest rate rise during the current year — a development that weighs on the yellow metal, which yields no periodic return.
Gold futures settled at approximately $4,073 per ounce, compared with $4,184 per ounce the previous week, while silver fell 10.79% over the week.
High interest rates pose a major challenge to gold's appeal as an investment instrument. In an economic environment characterised by rising borrowing costs, the precious metal loses part of its lustre given that it is an asset that generates no periodic return. As a result, many investors prefer to direct their liquidity towards channels that deliver direct and guaranteed yields.