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(Kitco News) - Finally, we can close the book on what was a volatile week for gold, to say the least.

Just to recap, first the metal rallied on ideas that weak retail sales and consumer inflation reports would result in the Federal Open Market Committee scaling back its moves to tighten monetary policy.

But, after hiking rates by 25 basis points on Wednesday afternoon, gold sold off, falling to a three-week low. Gold is now holding key support, facing a more than 1% loss on the week with August gold last trading at $1,255.70 an ounce.

The metal is now in “wait-and-see” mode. Analysts tell Kitco News that the metal may continue to suffer as the Fed’s monetary policy tightening weighs on the market.

While Fed Chair Janet Yellen said that the Committee is on track to raise interest rates this year and next, the market is reluctant to raise its expectations, Kitco News editor Neils Christensen noted in his Weekly Outlook.

“The CME 30-Day Fed Fund futures are now pricing in a 16% chance of another 25-basis point hike by September. Markets are pricing in only a 45% chance of a rate hike by the end of December,’ Christensen said.

Main Street & Wall Street alike look for gold to fall some more next week, according to the weekly Kitco News gold survey.

Kitco News’ Allen Sykora said in his weekly survey that, “Both camps have leaned higher so far in 2017 and thus have been right more often than not, as Comex August gold has risen 8.4% so far this year. This is the second straight week that the largest camp on Wall Street said lower, while it was the first time Main Street tilted bearish since March 10.”

Gold isn’t the only market seeing a reversal of fate.

After surging briefly to an all-time high of $3,000, Bitcoin has dropped 18.5% over the past week to a value of $2,317, which would mark its steepest weekly decline since Jan. 2015. The cryptocurrency has shed more than $10 billion (WOWZERS) in market value since the start of the week. If you missed it, be sure to watch our interview with best-selling author Jim Rickards, who finally comments on the bitcoin craze exclusively with Kitco News.

Kitco.com recently launched a brand new section dedicated to Bitcoin and the other cryptocurrencies, chock-full of charts and really everything you need to know about the crypto craze. Check it out and send us your thoughts!

To all the outstanding Dads out there, including my very own….. Happy Father’s Day! Still haven’t got him a gift? Here are some cool gold & silver gift ideas!

See you next week!

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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