Investing.com - Gold prices traded lower on Friday, despite a dip in the dollar, as investors’ expectations of a March interest rate hike soared.
Gold for April delivery on the Comex division of the New York Mercantile Exchange shed $5.25 or 0.45%, to trade at $1,227.65 a troy ounce by 12:55 ET. Gold is on course to record its biggest weekly loss in nearly four months.
Top-tier U.S. economic data had little impact on the yellow-metal as investors focused on whether the Federal Reserve will increase interest rates at its next meeting on March 15.
Services PMI missed expectations while the ISM non-manufacturing index revealed a 57.6 reading for February.
Economists expected a services PMI print of 53.9.
According to investing.com’s Fed rate monitor tool, nearly 80% of traders expect a rate hike in March.
The likelihood of a March rate hike could receive a further boost, as Federal Reserve Chair Janet Yellen and Fed Vice Chair Stanley Fisher are due to speak at 13:00 ET.
Gold is sensitive to moves in U.S. interest rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.
Elsewhere, silver futures traded higher at $17.78 a troy ounce.
Copper traded lower at $2.69 while platinum traded at $992.35 up 0.25%.