Gold poised for weekly gain as dollar hits over 1-year low

News

Gold prices on Friday were set for their biggest weekly gain since April, as the U.S. dollar hovered close to a more than one-year low on bets the Federal Reserve will soon hit the brakes on interest rate hikes.

Spot gold was steady at $1,958.45 per ounce by 0051 GMT, and up 1.8% for the week. U.S. gold futures were almost unchanged at $1,963.00.

Data on Thursday showed U.S. producer prices barely rose in June, providing more evidence the economy had entered a disinflation phase.

Meanwhile, the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, indicating the labor market remained tight.

Federal Reserve Governor Christopher Waller said on Thursday he’s not ready to call an all clear on U.S. inflation and favors more rate hikes this year, saying the upcoming July meeting should bring an increase.

Interest rate futures showed markets mostly priced in another rate hike from the Federal Open Market Committee (FOMC) at its July 25-26 meeting, but expectations of further increases have dropped.
The dollar index touched its lowest level since April 2022, making gold less expensive for overseas investors, while the yield on 10-year U.S. Treasury notes held close to a two-week low hit in the previous session. Gold is used as a safe investment during times of political and financial uncertainty, but higher interest rates increase the opportunity cost of holding non-yielding bullion.

Elsewhere, Australia on Friday appointed Michele Bullock as the next central bank governor, replacing Philip Lowe.

Spot silver fell 0.2% to $24.814 per ounce, platinum shed 0.4% to $968.65 and palladium dropped 1.4% to $1,277.35.

Articles You May Like

USDJPY outlook: Key levels to watch after pullback
Gold climbs after soft US inflation data; still set for weekly loss
Philadelphia Fed non-manufacturing service activity for December -6 vs -5.9 last month
Darden Restaurants stock climbs as Olive Garden, LongHorn Steakhouse fuel sales growth
Gold falls Rs 100 to Rs 78,600 per 10 gm; silver jumps Rs 500

Leave a Reply

Your email address will not be published. Required fields are marked *