US gold futures edge higher as dollar index slips 0.1% against rivals
25 June 2021 - 07:12
byBrijesh Patel
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Bengaluru — Gold gained on Friday and was set to post its first weekly rise in four as the dollar weakened, with investors awaiting US inflation data after mixed signals from Federal Reserve officials on interest rate hikes.
Spot gold was up 0.2% at $1,778.48/oz by 3.27am GMT. It has risen more than 0.8% so far this week, after last week’s 6% drop.
US gold futures rose 0.1% to $1,778.30/oz.
“Gold has really struggled to rebound convincingly this week. The market is struggling for a conviction or direction in the US dollar,” said Stephen Innes, managing partner at SPI Asset Management.
“The gold market continues to consolidate around these levels until the data comes out. The Feds are in no rush to raise rates and there would be enough inflation in the market to support gold.”
The dollar index slipped 0.1% against its rivals, making gold less expensive for holders in other currencies, ahead of US producer price data due later in the day that would offer further clues on rising inflation.
Two Fed officials warned on Thursday that inflation could rise more than policymakers’ expectation in the near term.
Fed chief Jerome Powell, however, said this week inflation would not be the only determinant of interest rate decisions, calming investors worried about policy tightening after the Fed’s hawkish turn.
Gold is viewed as a hedge against higher inflation that could follow stimulus measures.
Spot gold may break a support at $1,769/oz and fall into a range of $1,734/oz-$1,744/oz, according to Reuters technical analyst Wang Tao.
Palladium rose 0.5% to $2,653.17/oz, while platinum climbed 0.6% to $1,099.11/oz. Both the metals were on track for their best week since March.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Gold heads for weekly rise on weaker dollar
US gold futures edge higher as dollar index slips 0.1% against rivals
Bengaluru — Gold gained on Friday and was set to post its first weekly rise in four as the dollar weakened, with investors awaiting US inflation data after mixed signals from Federal Reserve officials on interest rate hikes.
Spot gold was up 0.2% at $1,778.48/oz by 3.27am GMT. It has risen more than 0.8% so far this week, after last week’s 6% drop.
US gold futures rose 0.1% to $1,778.30/oz.
“Gold has really struggled to rebound convincingly this week. The market is struggling for a conviction or direction in the US dollar,” said Stephen Innes, managing partner at SPI Asset Management.
“The gold market continues to consolidate around these levels until the data comes out. The Feds are in no rush to raise rates and there would be enough inflation in the market to support gold.”
The dollar index slipped 0.1% against its rivals, making gold less expensive for holders in other currencies, ahead of US producer price data due later in the day that would offer further clues on rising inflation.
Two Fed officials warned on Thursday that inflation could rise more than policymakers’ expectation in the near term.
Fed chief Jerome Powell, however, said this week inflation would not be the only determinant of interest rate decisions, calming investors worried about policy tightening after the Fed’s hawkish turn.
Gold is viewed as a hedge against higher inflation that could follow stimulus measures.
Spot gold may break a support at $1,769/oz and fall into a range of $1,734/oz-$1,744/oz, according to Reuters technical analyst Wang Tao.
Palladium rose 0.5% to $2,653.17/oz, while platinum climbed 0.6% to $1,099.11/oz. Both the metals were on track for their best week since March.
Silver was up 0.5% at $26.06/oz.
Reuters
NEWS ANALYSIS: SA’s artisanal miners face regulations
Gold edges higher but heads for weekly loss
Gold recovers a little as investors hunt for bargains
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Harmony energy push capitalises on reforms to avoid hefty carbon taxes
Gold edges higher on Jerome Powell’s more dovish tone
Gold gains as dollar falls back
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.