News

Gold eases from one-week high as dollar rebound dims appeal

Gold prices eased on Friday after rallying to a one-week high above the key $1,750 level in the previous session, as the rebounded and made the metal expensive for holders of other currencies.

FUNDAMENTALS

* Spot gold fell 0.1% to $1,754.64 per ounce by 0139 GMT, after rising nearly 1.8% on Thursday as the dollar index slipped.

* The dollar recouped most of those losses on Friday and began the final quarter of 2021 at close to its highest level of the year.

* U.S. gold futures dropped 0.1% to $1,755.90.

* Chicago Federal Reserve Bank President Charles Evans said on Thursday supply shocks that are pushing up on prices now will ease next year, and low interest rates will still be needed to bring U.S. inflation back durably to 2%.

* Bank of Japan policymakers in September saw rising risks to the economy from slowing Chinese growth, semiconductor shortages and Southeast Asian factory shutdowns, which could affect growth projections at its next policy-setting meeting.

* Gold is traditionally seen as an inflation hedge, although reduced central bank stimulus and interest rate hikes tend to push government bond yields up, in turn translating into a higher opportunity cost for gold that pays no interest.

* Data on Thursday showed an unexpected rise in weekly U.S. jobless claims to a seasonally adjusted 362,000 for the week ended Sept. 25. Economists in a Reuters poll had forecast 335,000 applications.

* A majority of the U.S. Senate on Thursday voted to keep the government fully operating at the end of this week when the new fiscal year begins.

* Silver fell 0.6% to $22.06 per ounce.

* Platinum was down 0.9% to $954.51 and palladium edged 0.1% lower to $1,907.96.

Articles You May Like

NZDUSD corrects lower after sniffing the 200 day MA
NZD/JPY Price Analysis: Double top in the daily chart, targets a fall to 80.50
GBPUSD falls back to 100 hour MA, swing area.
THE BEST Bollinger Bands RSI Trading Strategy for Scalping, Day trading || Crypto, Forex, Stocks…
USDJPY moves back to the downside and below its 200 day moving average

Leave a Reply

Your email address will not be published. Required fields are marked *