News

Gold set for second weekly loss as firmer dollar dents appeal

Gold prices were set for a second weekly loss as a firmer dollar dented the metal‘s allure for holders of other currencies while investors await a key US Federal Reserve meeting for clues on how soon the central bank will start to taper stimulus.

FUNDAMENTALS
Spot gold was flat at $1,754.86 per ounce, as of 0037 GMT on Friday.

Bullion slipped as much as 2.7% on Thursday, and dropped 1.8% so far this week.

US gold futures fell 0.1% to $1,755.00.

The dollar held near three-week highs against a basket of major currencies after a raft of strong US economic data rekindled expectations for earlier policy tightening by the US Federal Reserve.

US retail sales unexpectedly increased in August, likely tempering expectations for a sharp slowdown in economic growth in the third quarter.

The Federal Open Market Committee’s two-day policy meeting is due to be held on Sept. 21-22 and could provide clues as to when the US central bank will start withdrawing its asset purchases.

Reduced central bank stimulus tends to lift bond yields, which raises the opportunity cost of holding non-interest bearing gold. It also helps boost the dollar, further weighing on bullion.

Economists in a Reuters poll pushed their expectations back to November for when the US Federal Reserve could began tapering, as surging Delta variant cases likely derailed an economic recovery in the third quarter.

European Central Bank chief economist Philip Lane revealed in a private meeting with German economists that it expects to hit its 2% inflation goal by 2025, the Financial Times said on Thursday.

Bullion is often viewed as a hedge against inflation.

Silver was flat at $22.93 per ounce, after hitting its lowest in more than a month on Thursday.

rose 0.6% to $938.88, while palladium dipped 0.1% to $2,032.31.

Articles You May Like

JetBlue shares tumble as costs push it to a loss despite profit forecast on higher fares
Oil prices extend losses on demand worries
Gold Price Forecast: XAUUSD stills down $20 from daily high post-US jobs data
The price of a pint is going through the roof. Here’s why UK beer costs are far outpacing inflation
How To Do Forex Trading in Bangladesh – Forex Trading Bangla Tutorial 2022

Leave a Reply

Your email address will not be published.