FX.co ★ Gold Declines On Dollar Strength Amid Hawkish Fed Remarks

Gold prices fell on Friday, the dollar advanced and Treasury yields climbed amid worries of more interest-rate hikes by the Federal Reserve.

Spot gold slid half a percent to $1,826.47 per ounce, while U.S. gold futures were down 0.9 percent at $1,834.75.

Strong U.S. data released overnight and hawkish Fed remarks fueled inflation and rate-hike worries.

U.S. wholesale inflation slowed in January, but on a month-to-month basis, producer prices increased by 0.7 percent after having declined by 0.5 percent in December, data showed on Thursday.

Initial jobless claims data showed a resilient labor market, putting further pressure on the U.S. central bank to tighten monetary policy.

Meanwhile, Fed officials James Bullard and Loretta Mester warned in separate speeches that the central bank could raise interest rates at a sharper pace in the coming months, if inflation remains sticky.

Fed President Loretta Mester said there is need for more tightening to lower inflation back to the Fed's 2 percent target.

Separately, St. Louis Fed President James Bullard argued that there was a good case for the Fed to have been more aggressive with its recent rate decision.

The U.S. economic calendar remains light today, with a report on U.S. import and export prices along with a reading on leading U.S. economic indicators likely to attract investor attention.