RIYADH: Gold prices were en route to their worst week since early February on Friday as the dollar strengthened after US Federal Reserve Chief Jerome Powell reiterated that more interest rate hikes were in the offing, according to Reuters. Spot gold was up 0.4 percent to $1,921.29 per ounce by 1543 p.m. Saudi time, yet stayed close to a three-month low hit earlier in the session. Prices are down 1.8 percent for the week. US gold futures gained 0.4 percent to $1,931.40. “Gold is clearly an asset in demand but taking a short-term view on where the price is today, we still think there’s a little bit (of) room for gold to underperform,” said Edward Gardner, commodities economist at Capital Economics. The dollar was up 0.5 percent and bound for its first weekly rise in four, making bullion more expensive for holders of other currencies. Powell, in his second day of testimony, said the Fed would continue to raise interest rates at a “careful pace.” The market now sees a 75 percent chance of a 25 basis-point rate hike in July, with cuts seen only 2024 onwards. “While we do not see the need for further rate increases, we do not expect an increase in gold and silver investment demand either, due to the resilience of the US economy and the high levels of interest rates, which are offering other alternatives to safe-haven seekers,” said Carsten Menke, head of next generation research at Julius Baer. Interest rate hikes raise the opportunity cost of holding non-yielding bullion. Spot silver rose 0.5 percent to $22.35 per ounce, but was set for its biggest weekly drop since October 2022. Platinum was down 0.3 percent to $920.68, on course for its worst week since August 2022. The strength of the dollar and concerns about China’s industrial sector and economy as a whole have contributed to silver’s decline, said Gardner. Palladium rose 0.3 percent to $1,286.86 after hitting its lowest since May 2019 on Thursday.