Daily The Business

Gold prices rise as Fed stance weakens dollar

800

BENGALURU: Gold prices climbed on Friday as the dollar retreated on expectations the Federal Reserve may pause interest rate hikes if the U.S. economy slows this year, while investors awaited news on progress in the Sino-U.S. trade talks.

Spot gold rose 0.6 percent to $1,293.55 per ounce as at 0604 GMT, heading for a fourth straight weekly gain. The yellow metal is up 0.7 percent so far this week.

U.S. gold futures were up 0.5 percent at $1,293.4 per ounce.

The dollar slipped against other major currencies, having rebounded on Thursday from three-month lows helped by Federal Reserve Chairman Jerome Powell’s comment suggesting the central bank is not done tightening monetary policy just yet.

A partial U.S. government shutdown extended into its 20th day and provided little comfort to the U.S. currency after President Donald Trump threatened on Thursday to use emergency powers to bypass U.S. Congress to pay for a wall on the U.S.-Mexico border.

Asian equities inched up to one-month highs, but the rally’s momentum slowed partly as investors sought more clarity on whether the United States and China could make headways on their trade talks.

Also aiding gold’s upward trend are concerns about weakening global growth, further emphasised by sombre data out of Switzerland and France on Thursday.

Spot gold is expected to retest a resistance at $1,299 per ounce, with a good chance of breaking above this level and rising further to $1,311, according to Reuters technical analyst Wang Tao.

Palladium climbed 0.8 percent to $1,331.85 per ounce and was up about 2.5 percent for the week.

Silver rose about 0.9 percent to $15.70 per ounce, while platinum was unchanged at $819.74 per ounce.

Leave A Reply

Your email address will not be published.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy