Gold ends lower but marks fourth weekly profit in row

Gold prices declined on Friday as the dollar rallied against most major rivals while markets assess the ongoing banking crisis and the Federal Reserve's policies. 

Stubborn Banking Troubles

Concerns about the banking sector magnified again after a sudden increase the costs of insuring Deutsche Bank's debts.

Banking stocks in Europe fell in unison today in European markets, triggering concerns about a continuation of the crisis.

Deutsche Bank's New York Exchange listed stock fell 6.75% to $9, while falling over 9% in the Frankfurt Exchange.

Data

US durable goods orders fell 1% in February for the second month, missing estimates of a 0.4% increase.

Core orders, excluding transportation, were flat, missing estimates of a 0.2% increase.

The US manufacturing PMI rose to 49.3 this month from 47.3 in February, beating expectations of 47.

The services PMI rose to 53.8 this month from 50.6 in the previous reading.

The Fed 

The Federal Reserve raised interest rates by 25 basis points to 5%, the highest since mid 2007.

The Fed removed the phrasing about the need for continuous hikes in interest rates, preferring to use the phrase of "some more tightening" could be appropriate.

The Fed also maintained neutral interest rates outlook at 5.25% for 2023, paving the way for one more rate hike this year.

Fed Chair Jerome Powell said the Fed will do whats "necessary" to bring inflation back to 2%, with another rate hike if needed.

Powell said US growth was impacted by higher interest rates, while the labor sector remains strong, and unemployment low.

He asserted the Fed is working with the US Treasury Department to scan the banking system and guarantee its strength and protect deposits.

And finally he said that it's unlikely for the Fed to cut interest rates this year, and a rate increase is possible.

Otherwise, the dollar index rose 0.6% as of 18:39 GMT to 103.1, with a session-high at 103.3, and a low at 102.5. 

Gold spot prices fell 0.8% as of 18:39 GMT, or $16.30 to $1,979 an ounce, while marking a 0.5% profit this week.