Gold drops over 2% to $4,270 amid Fed rate concerns
Business
Gold prices are having a rough week, dropping over 2% to around $4,270 per ounce, thanks to rising energy costs and talk of more interest rate hikes from the US Federal Reserve.
Silver is also down a bit. Since gold doesn't pay any interest, it tends to lose its shine when rates go up.
Plus, yields on 30-year US bonds rose to just shy of 5.5%, the highest in more than two decades, as inflation and oil prices climb.
Raphael Lamm sees decline as temporary
Even with this recent slump, hedge fund manager Raphael Lamm isn't worried: he still sees the decline in gold prices as temporary and the key forces underpinning its long-term rally remain intact.
As of Friday morning in Singapore, both gold and silver were slightly lower.