By Gina Lee

Investing.com – Gold was up on Friday morning in Asia but moves remained small and the yellow metal was headed for its sharpest weekly decline since November 2021. Investors are still digesting the U.S. Federal Reserve’s latest policy decision, which drove the dollar to a multimonth high.

At 10:53 pm ET (3:53 GMT), they were up 0.2% to $1,797.70 The worst decline since Nov. 26, however, saw gold fall below $1,800, and it fell 2% in the week.

While the, which moves in an opposite direction to gold, was slightly lower on Friday, the remained near its highest level since July 2020.

The ripple effect from the Fed’s hawkish turn in its , handed down on Wednesday, continues. Markets are pricing in six to seven interest rate increases by the Fed in 2022, with expectations for them being high.

The fourth quarter 2021 quarter ended with a 6.9% increase in quarter-on quarter, which helped to boost investor sentiment.

The, the and the are some of the other central banks that will be releasing their policy decisions over the next week.

A Reuters poll showed that gold could fall as central banks raise interest rates. They do so to increase yields on bonds and decrease the attractiveness of non-yielding silver.

The supply side of the equation, Swiss customs data revealed that gold exports to Switzerland in 2021 rose at their highest levels since 2018. Demand in India and China are the two biggest consumers markets, both of which have begun to recover from COVID-19.

Silver fell 0.2% in other precious metals. Platinum rose 0.1% while palladium stood at $2,375.18.