New Delhi: gold prices It was higher on Friday but bound for weekly losses as the US Federal Reserve forecast higher interest rates for a longer period.
spot gold It was up 0.2% at $1,780.63 an ounce as of 0230 GMT, but was down about 1% so far for the week. us gold futures were up 0.1% at $1,789.40.
The dollar index slipped 0.2%. The weakening of the dollar has made gold cheaper for foreign buyers.
“The fall in gold this week follows the Fed meeting. At the same time, with recession risks rising, the US dollar will emerge as the preferred safe haven,” said Ilya Spivak, head of global macro at Tastylive.
The Fed raised interest rates by 50 basis points on Wednesday, as expected, but Chair Jerome Powell said the central bank will hike further next year even if the economy slips into recession.
Although gold has traditionally been known as a hedge against inflation and economic uncertainties, high interest rates reduce the appeal of bullion by increasing the opportunity cost of holding the non-yielding metal.
Central banks in Europe followed the Fed in slowing the pace of interest rate hikes but sent an equally tough message that financial conditions would remain tight even as economic performance worsened.
Meanwhile, India is planning to invite bids to extract gold from 50 million tonnes of processed ore at a cluster of colonial-era mines in the southern state of Karnataka, a senior government official with direct knowledge of the matter said.
spot silver It rose 0.2% to $23.09 an ounce, but was down 1.5% for the week.
Platinum rose 0.5% to $1,011.63. Durg It rose 1.1% to $1,810.51 but posted its biggest weekly decline in two months.
Spivak said recession risks would fuel weak industrial demand and this could weigh more heavily on platinum and palladium because of their use in the automotive industry.
spot gold It was up 0.2% at $1,780.63 an ounce as of 0230 GMT, but was down about 1% so far for the week. us gold futures were up 0.1% at $1,789.40.
The dollar index slipped 0.2%. The weakening of the dollar has made gold cheaper for foreign buyers.
“The fall in gold this week follows the Fed meeting. At the same time, with recession risks rising, the US dollar will emerge as the preferred safe haven,” said Ilya Spivak, head of global macro at Tastylive.
The Fed raised interest rates by 50 basis points on Wednesday, as expected, but Chair Jerome Powell said the central bank will hike further next year even if the economy slips into recession.
Although gold has traditionally been known as a hedge against inflation and economic uncertainties, high interest rates reduce the appeal of bullion by increasing the opportunity cost of holding the non-yielding metal.
Central banks in Europe followed the Fed in slowing the pace of interest rate hikes but sent an equally tough message that financial conditions would remain tight even as economic performance worsened.
Meanwhile, India is planning to invite bids to extract gold from 50 million tonnes of processed ore at a cluster of colonial-era mines in the southern state of Karnataka, a senior government official with direct knowledge of the matter said.
spot silver It rose 0.2% to $23.09 an ounce, but was down 1.5% for the week.
Platinum rose 0.5% to $1,011.63. Durg It rose 1.1% to $1,810.51 but posted its biggest weekly decline in two months.
Spivak said recession risks would fuel weak industrial demand and this could weigh more heavily on platinum and palladium because of their use in the automotive industry.