Home Business Gold prices fall, set for biggest weekly drop in a month

Gold prices fall, set for biggest weekly drop in a month

3 min read
Comments Off on Gold prices fall, set for biggest weekly drop in a month

Article content

Gold fell on Friday as a higher dollar

and rising U.S. Treasury yields hit demand for greenback-priced

bullion, and put prices on track for their biggest weekly drop

since mid-May.

Spot gold dropped 0.6% to $1,846.33 per ounce by 0553

GMT. U.S. gold futures dipped 0.1% to $1,849.00.

Gold prices have fallen about 1.3% in what has been a

volatile week, after starting it near a one-month peak before

hitting a four-week low on Tuesday.

“We haven’t really moved a whole lot. We’re still kind of

Article content

stuck in this $1,800 to $1,880-90 range looking for direction,”

and gold needs clarity on the impact of rates, said Ilya Spivak,

a currency strategist at DailyFX.

“That clarity will either have investors say – yes, I think

inflation is going to be contained – gold lower, or no – I don’t

think inflation is going to be contained, I want an alternative

store of value – gold higher,” Spivak said.

World stocks headed for their worst week since a market

meltdown in the pandemic’s beginning in March 2020, as investors

worried about growth in the face of global rate hikes.

The U.S. Federal Reserve announced its biggest interest rate

hike since 1994 this week, as it scrambles to rein in soaring

inflation. Rising rates in the United States increase the

Article content

opportunity cost of holding non-yielding gold.

“Going forward, we expect dollar strength and recovering

bond yields to cap gold prices,” as the Fed delivers on its

hawkish stance, Fitch Solutions said in a note.

“However, prices will not collapse back to pre-COVID-19

levels as gold will remain supported by the evolving

Russia-Ukraine war, rising global inflation, and the still

persisting pandemic.”

Spot silver fell 0.3% to $21.87 per ounce. Platinum

dipped 0.2% to $948.50, while palladium rose 1.8%

to $1,912.69, with both headed for weekly declines.

(Reporting by Bharat Govind Gautam in Bengaluru; Editing by

Rashmi Aich)

Source link

Load More Related Articles
Load More By James Tisdale
Load More In Business
Comments are closed.

Check Also

New Details About Queen Elizabeth II’s Final Resting Place

Getty Images Queen Elizabeth II was interred at Windsor Castle on September 19, and now th…