That is partly due to US Fed chair Jerome Powell’s pushing back on market expectations of rate cuts in 2023
05 May 2023 - 07:40
byAshitha Shivaprasad
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Zimbabwe will investigate allegations of money laundering and gold smuggling that were aired in an Al-Jazeera documentary last month, the government said in its first response to the broadcaster’s revelations. Image: Bloomberg
Bengaluru — Gold prices were flat on Friday but were set for their biggest weekly gain in nearly two months, as hopes of a pause in the US Federal Reserve's interest-rate hike cycle and banking worries in the country bolstered the safe-haven metal's appeal.
Spot gold was little changed at $2,050.63/oz of 3.49am GMT, but was up 3% for the week. US gold futures were up 0.1% to $2,058.50.
On Thursday, prices jumped to $2,072.19/oz, just shy of a record high of $2,072.49 hit in 2020, after the Fed signalled a likely pause in its rate-hike tightening campaign.
“Given the reminder that the Fed is data-dependant and not considering cutting rates this year, traders will actively seek weak data from the US to justify potential (rate) cuts,” said Matt Simpson, a senior market analyst at City Index.
US Fed chair Jerome Powell pushed back on market expectations of rate cuts in 2023 and highlighted that the central bank would watch incoming data to determine future monetary policy decisions.
Meanwhile, PacWest Bancorp's decision to explore strategic options sparked investor worries of a widening financial crisis.
Mounting risks to the US economy have also supported strong investor demand into gold as they sought haven assets, ANZ said in a note.
Economic uncertainty and lower rates boost demand for the zero-yield asset.
The dollar index was set for a weekly drop, making gold more attractive for overseas buyers.
Investors are awaiting the US labour department's non-farm payrolls (NFP) data due at 12.30pm GMT.
“We expect dollar bears to bounce at the whiff of soft employment data, which could send gold higher... A strong report could be a concern for gold bulls,” City Index's Simpson said.
Spot silver fell 0.2% to $26.03 per ounce.
Platinum gained 0.8% to $1,047.27/oz and palladium edged 1.1% higher to $1,464.80/oz. Both the metals were headed for a weekly decline.
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 biggest weekly jump in two months
That is partly due to US Fed chair Jerome Powell’s pushing back on market expectations of rate cuts in 2023
Image: Bloomberg
Bengaluru — Gold prices were flat on Friday but were set for their biggest weekly gain in nearly two months, as hopes of a pause in the US Federal Reserve's interest-rate hike cycle and banking worries in the country bolstered the safe-haven metal's appeal.
Spot gold was little changed at $2,050.63/oz of 3.49am GMT, but was up 3% for the week. US gold futures were up 0.1% to $2,058.50.
On Thursday, prices jumped to $2,072.19/oz, just shy of a record high of $2,072.49 hit in 2020, after the Fed signalled a likely pause in its rate-hike tightening campaign.
“Given the reminder that the Fed is data-dependant and not considering cutting rates this year, traders will actively seek weak data from the US to justify potential (rate) cuts,” said Matt Simpson, a senior market analyst at City Index.
US Fed chair Jerome Powell pushed back on market expectations of rate cuts in 2023 and highlighted that the central bank would watch incoming data to determine future monetary policy decisions.
Meanwhile, PacWest Bancorp's decision to explore strategic options sparked investor worries of a widening financial crisis.
Mounting risks to the US economy have also supported strong investor demand into gold as they sought haven assets, ANZ said in a note.
Economic uncertainty and lower rates boost demand for the zero-yield asset.
The dollar index was set for a weekly drop, making gold more attractive for overseas buyers.
Investors are awaiting the US labour department's non-farm payrolls (NFP) data due at 12.30pm GMT.
“We expect dollar bears to bounce at the whiff of soft employment data, which could send gold higher... A strong report could be a concern for gold bulls,” City Index's Simpson said.
Spot silver fell 0.2% to $26.03 per ounce.
Platinum gained 0.8% to $1,047.27/oz and palladium edged 1.1% higher to $1,464.80/oz. Both the metals were headed for a weekly decline.
Reuters
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