Last Update: July 15, 2023, 03:11 AM IST
New York, United States (USA)
Spot gold fell 0.1% to $1,959.27 an ounce as of 01:45 p.m. EDT (1745 GMT), but is up about 1.8% so far this week. US gold futures were little changed at $1,964.40.
Gold ready for biggest weekly gain since April on easing US inflation and rate hike hopes
Gold prices eased on Friday but are on track for their biggest weekly gain since April as signs of easing US inflation raised hopes of holding off on a rate hike by the Federal Reserve later this month Is. Spot gold fell 0.1% to $1,959.27 an ounce as of 01:45 p.m. EDT (1745 GMT), but is up about 1.8% so far this week. US gold futures were little changed at $1,964.40.
Earlier this week, bullion rose to its highest level since June 16 after data showed US consumer prices posted the smallest annual increase in two years in June, prompting speculation that the Federal Reserve may soon… May end its rate-hike cycle. “With inflation coming down, there has been a slight fall in expectations of further rate hikes, which has helped gold this week. But, today prices are lower as yields are rising,” said Daniel Pavillonis, senior market strategist at RJO Futures.
“The prices are going to remain range bound in the near term. If the Fed starts saying we don’t need to raise rates any further, we could see more upside in gold.”
Benchmark US yields rose, making non-yielding bullion less attractive to investors. But the dollar was on track for its biggest weekly decline since November, undercutting the slide in gold prices.
On Thursday, Fed Governor Christopher Waller said he is not ready to make an entirely outright decision on inflation and favors a rate hike this year – a sentiment reflected in June’s FOMC minutes. Higher interest rates increase the opportunity cost of holding zero-yield gold.
On the physical front, Indian dealers offered discounts on purchase of physical gold for the third consecutive week as higher domestic prices impacted retail demand. [GOL/AS]
The United Arab Emirates has removed the refinery Emirates Gold from its “good delivery” list certification scheme, according to the government website.
Silver rose 0.4% to $24.95 an ounce, its best week since mid-March. Platinum was up 0.1% at $974.03 and palladium was down 1.4% at $1,277.18, but both looked set for a second straight weekly gain.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – reuters,
