(Bloomberg) -- Gold declined after posting the biggest weekly gain since May as investors weighed prospects for tighter US monetary policy and concerns over an economic slowdown.

Bullion hit the lowest level since March 2021 last week, only to rebound as US Treasury yields eased. After raising rates in June by the most since 1994, Federal Reserve policy makers are expected to approve another 75 basis-point hike when they meet July 26-27.

Gold is heading for a fourth monthly loss as Fed tightening and a stronger dollar dim its allure as a haven, overshadowing concerns about inflation and a slowdown. At the weekend, while former Treasury Secretary Lawrence Summers cast doubt on the likelihood of a soft landing for the US, incumbent Janet Yellen said that she doesn’t see any sign the economy is in a broad recession.

Additional downward pressure on gold has come from waning investor interest, with holdings in bullion-backed exchange-traded funds ebbing for a sixth week, according to initial data compiled by Bloomberg. That’s cut holdings to the lowest since early March.

Spot gold lost 0.4% to $1,721.31 an ounce at 9:01 a.m. in Singapore. Prices sagged as low as $1,680.99 on Thursday, before ending the week 1.1% higher. The Bloomberg Dollar Spot Index was steady after easing 1% last week. Silver, palladium and platinum fell.

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