- August 23, 2024
- By: Admin1_blog
- Precious Metal Market
Gold prices inched up on Friday but were set for a weekly decline after slipping from record highs, as the U.S. dollar and Treasury yields rebounded ahead of Federal Reserve Chair Jerome Powell’s speech that could give clues on interest rate cuts.
Spot gold rose 0.2% to $2,488.74 per ounce by 0257 GMT and U.S. gold futures gained 0.3% to $2,524.30.
Bullion, which hit an all-time high of $2,531.60 on Tuesday, has fallen nearly 1% this week, hurt by a bounce in dollar index and benchmark U.S. 10-year yields following an unanticipated increase in the unemployment rate.
“Gold has been treading higher (today), albeit cautiously given the event risk which awaits in the form of Powell’s Jackson Hole address,” said Tim Waterer, chief market analyst, KCM Trade.
“Gold’s stay below $2,500 could be temporary in nature, with the fundamentals still appearing favorable for the precious metal.”
Fed policymakers on Thursday voiced support for starting rate cuts next month as inflation has eased and the labor market is showing signs of cooling, though one signaled he is in no rush to ease policy.
Traders will now focus on Powell’s comments at the Kansas City Fed’s Jackson Hole, Wyoming, symposium due at 1400 GMT.
Traders have fully priced in Fed easing next month, with a 76% chance of a 25-basis-point cut, according to CME FedWatch tool. A low interest rate environment tends to boost non-yielding bullion’s appeal.
SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.13% on Thursday.
Elsewhere, U.S. and Israeli delegations began new talks in Cairo to address differences over a truce proposal aimed at ending the war between Israel and Hamas.
Meanwhile, spot silver rose 0.2% to $29.03 per ounce, platinum gained 0.7% to $950.55 and palladium fell 0.7% to $926.75.
Source : cnbc
