Investing.com - Gold prices ended a bit higher on Friday, but the yellow metal still logged its second straight weekly loss after the Federal Reserve hiked rates and maintained plans to go ahead with another increase by year-end.
Gold for August delivery inched up $1.90, or about 0.2%, to close at $1,256.50 a troy ounce on the Comex division of the New York Mercantile Exchange. It touched its lowest since May 24 at $1,252.70 on Thursday.
For the week, the precious metal lost $13.20, or roughly 1.2%, the second weekly loss in a row.
Also on the Comex, silver futures dipped 5.5 cents, or around 0.3%, to settle at $16.66 a troy ounce, the lowest level since May 19. The white metal declined 3.3% for the week.
The Fed raised interest rates as widely expected on Wednesday and maintained plans to go ahead with another rate hike by year-end. The central bank also provided greater detail about how it plans to reduce its massive $4.5 trillion balance sheet.
Despite the Fed's relatively hawkish message, market players remained doubtful over the Fed's ability to raise rates as much as it would like before the end of the year due to a recent run of disappointing U.S. economic data.
U.S. homebuilding fell for a third straight month in May to the lowest level in eight months, data showed on Friday, suggesting that subdued housing activity could dent economic growth in the second quarter.
In a separate report the University of Michigan said its consumer sentiment gauged fell to 94.5 in early June from 91.1 in May. Analysts had expected a reading of 97.1.
Futures traders are pricing in less than a 15% chance of a hike at the Fed's September meeting, according to Investing.com’s Fed Rate Monitor Tool. Odds of a December increase was seen at about 35%.
The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
Elsewhere in precious metals trading, platinum tacked on $5.50, or 0.6%, to end at $926.80, for a weekly loss of about 1.1%, while palladium advanced $7.70, or 0.9%, to close at $865.65 an ounce, taking its weekly gain to roughly 2.8%.
Meanwhile, copper lost less than half a cent on Friday to settle at $2.564 a pound, ending about 3.2% lower for the week.
Following a busy week packed with central bank meetings, market players will focus on a handful of Federal Reserve speakers in the week ahead, as they look for more clues on future monetary policy moves.
Traders will also keep an eye out on more U.S. housing data to gauge if a recent downtick in consumer spending and inflation is translating into lower home prices and slack in sales.
Meanwhile, in Europe, market players eagerly await the start of Brexit negotiations between Britain and the European Union.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, June 19
Britain's Brexit minister David Davis and the European Union's chief negotiator Michel Barnier are due to start negotiations over Britain's departure from the bloc in Brussels.
New York Fed President William Dudley and Chicago Fed President Charles Evans are due to make public appearances.
Tuesday, June 20
Fed Vice Chair Stanley Fischer, Boston Fed President Eric Rosengren and Dallas Fed President Rob Kaplan are scheduled to deliver comments.
Wednesday, June 21
The National Association of Realtors is to release data on existing home sales.
Thursday, June 22
The U.S. is to produce weekly data on initial jobless claims.
Fed Governor Jay Powell is due to speak before the Senate Banking Committee.
Friday, June 23
The Commerce Department is to publish a report on new home sales.
St. Louis Fed President James Bullard, Cleveland Fed President Loretta Mester and Fed Governor Powell make public remarks.