Spot gold and US gold futures edge higher as dollar remains near a more than nine-month high
20 August 2021 - 07:17
byEileen Soreng
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.
A jewellery showroom in Mumbai, India. Picture: REUTERS/FRANCIS MASCARENHAS
Bengaluru — Gold prices inched up on Friday, as rising concerns over the spread of the coronavirus Delta variant and its impact on economic recovery soured risk sentiment, but a stronger dollar capped further gains.
Spot gold rose 0.2% to $1,784.07/oz by 3.52am GMT and is up about 0.3% for the week. US gold futures were up 0.3% at $1,786.10/oz.
“Risk aversion means that capital is going into the safety of bonds, which is pulling down on yields and so yields haven’t really moved very much and of course that conflicted influence is likewise reflected in gold,” said DailyFX currency strategist Ilya Spivak.
Asian shares extended losses, while the dollar held near a more than nine-month high hit on Thursday.
A stronger dollar makes the greenback-denominated gold more expensive for holders of other currencies.
“As we head into Jackson Hole, some of those corrective gains that we saw in gold are likely to get retraced,” Spivak said, adding, the markets are positioning for the Federal Reserve to continue to build on the narrative that the tapering is becoming imminent and a formal announcement could be made as soon as September.
Federal Reserve chair Jerome Powell will speak on “the economic outlook” at next week’s Jackson Hole, Wyoming symposium, where he is expected to lay out a clearer road map on the central bank’s taper plans.
Fed’s July policy meeting minutes showed officials were largely on board to start easing bond purchases this year if the economy continues to improve as expected.
Data on Thursday showed the number of Americans filing new claims for unemployment benefits fell to a 17-month low last week.
Silver eased 0.1% to $23.22/oz and was headed for a third straight weekly decline.
Platinum rose 0.6% to $979.50/oz, but is down more than 4% for the week.
Palladium gained 0.7% to $2,328.91/oz. The metal was headed for its worst week since March 2020, falling 12%.
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 rises as virus fears hit risk appetite
Spot gold and US gold futures edge higher as dollar remains near a more than nine-month high
Bengaluru — Gold prices inched up on Friday, as rising concerns over the spread of the coronavirus Delta variant and its impact on economic recovery soured risk sentiment, but a stronger dollar capped further gains.
Spot gold rose 0.2% to $1,784.07/oz by 3.52am GMT and is up about 0.3% for the week. US gold futures were up 0.3% at $1,786.10/oz.
“Risk aversion means that capital is going into the safety of bonds, which is pulling down on yields and so yields haven’t really moved very much and of course that conflicted influence is likewise reflected in gold,” said DailyFX currency strategist Ilya Spivak.
Asian shares extended losses, while the dollar held near a more than nine-month high hit on Thursday.
A stronger dollar makes the greenback-denominated gold more expensive for holders of other currencies.
“As we head into Jackson Hole, some of those corrective gains that we saw in gold are likely to get retraced,” Spivak said, adding, the markets are positioning for the Federal Reserve to continue to build on the narrative that the tapering is becoming imminent and a formal announcement could be made as soon as September.
Federal Reserve chair Jerome Powell will speak on “the economic outlook” at next week’s Jackson Hole, Wyoming symposium, where he is expected to lay out a clearer road map on the central bank’s taper plans.
Fed’s July policy meeting minutes showed officials were largely on board to start easing bond purchases this year if the economy continues to improve as expected.
Data on Thursday showed the number of Americans filing new claims for unemployment benefits fell to a 17-month low last week.
Silver eased 0.1% to $23.22/oz and was headed for a third straight weekly decline.
Platinum rose 0.6% to $979.50/oz, but is down more than 4% for the week.
Palladium gained 0.7% to $2,328.91/oz. The metal was headed for its worst week since March 2020, falling 12%.
Reuters
Gold digs in near one-week peak as tapering fears subside
Gold rises but on track for weekly decline
Gold rises as traders favour safe-havens amid Delta variant concern
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
New purity rule slows gold supply for festivals in India
DRDGold appoints Timothy Cumming as new chair
Gold rises as Covid-19 concerns fuels its safe-haven appeal
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.