gold prices Shares held steady on Friday but were on track for a fifth consecutive weekly gain as a weak dollar and hopes of a slower rise in US interest rates boosted the appeal of safe-haven bullion.
spot gold It was little changed at $1,930.04 per ounce as of 0308 GMT and was up 0.5% for the week. On Thursday, the price reached $1,935.20, the highest level since April 2022.
us gold futures rose 0.4% to $1,931.50.
The US Federal Reserve is likely to end its tightening cycle after a 25-basis-point hike at each of its next two policy meetings and then keep interest rates steady for at least the rest of the year, according to a Reuters poll.
“Gold could reach $2,000 this year, but for that we need to see a dovish tone from the Fed,” said Yep Jun Rong, strategist at IG Markets.
Boston Fed President Susan Collins said on Thursday the Fed would probably need to raise rates “just above” 5%, while Fed Vice Chairman Lael Brainard said there was evidence favoring a “soft landing” for the US economy. .
With lower rates translating into lower returns on interest-bearing assets like government bonds, investors may prefer zero-yield gold.
“There are signs that show the US is probably heading into a recession, this will support gold as it is historically supportive of gold,” said Brian Lan, managing director at Singapore-based dealer Goldsilver Central.
Data on Wednesday showed US retail sales fell by the most in a year, putting the overall economy on a weak growth path into 2023.
The dollar index was heading for the second consecutive weekly decline, making bullion cheaper for overseas buyers.
spot silver rose 0.5% to $23.94.
platinum Falling 0.1% to $1,032.25, palladium fell 0.3% to $1,748.28. Both the metals declined for the second consecutive week.
spot gold It was little changed at $1,930.04 per ounce as of 0308 GMT and was up 0.5% for the week. On Thursday, the price reached $1,935.20, the highest level since April 2022.
us gold futures rose 0.4% to $1,931.50.
The US Federal Reserve is likely to end its tightening cycle after a 25-basis-point hike at each of its next two policy meetings and then keep interest rates steady for at least the rest of the year, according to a Reuters poll.
“Gold could reach $2,000 this year, but for that we need to see a dovish tone from the Fed,” said Yep Jun Rong, strategist at IG Markets.
Boston Fed President Susan Collins said on Thursday the Fed would probably need to raise rates “just above” 5%, while Fed Vice Chairman Lael Brainard said there was evidence favoring a “soft landing” for the US economy. .
With lower rates translating into lower returns on interest-bearing assets like government bonds, investors may prefer zero-yield gold.
“There are signs that show the US is probably heading into a recession, this will support gold as it is historically supportive of gold,” said Brian Lan, managing director at Singapore-based dealer Goldsilver Central.
Data on Wednesday showed US retail sales fell by the most in a year, putting the overall economy on a weak growth path into 2023.
The dollar index was heading for the second consecutive weekly decline, making bullion cheaper for overseas buyers.
spot silver rose 0.5% to $23.94.
platinum Falling 0.1% to $1,032.25, palladium fell 0.3% to $1,748.28. Both the metals declined for the second consecutive week.