2023-06-16 06:00:00
gold
Gold prices fell on Friday, heading for a slight weekly decline, as dealers assessed recent US economic data and the US Federal Reserve’s signals for further monetary tightening.
Spot gold fell 0.2 percent to $1,954.83 an ounce by 0450 GMT. US gold futures also fell 0.2 percent to $1,967.30.
The yellow metal fell to its lowest level in three months on Thursday, before changing course and ending the day higher, after US economic data eased some concerns about the Federal Reserve’s signals about raising interest rates in the future.
“Gold is struggling higher because the Fed’s message on inflation and interest rates is still hawkish. So it kind of removes the incentive to buy gold because more rate hikes are on the horizon,” said Edward Meir, metals analyst at Marix.
Gold is considered a safe haven amid economic uncertainty, but high interest rates reduce the attractiveness of the yellow metal, which does not yield a return.
Dealers now see a 72 percent chance of a 25 basis point rate hike in July after the US central bank indicated in new forecasts that borrowing costs may still need to rise by up to half a percentage point by the end of the year.
The dollar index held near a one-month low, limiting gold’s losses.
As for other precious metals, silver settled in spot transactions at $ 23.8451 an ounce, and platinum did not witness a significant change, recording $ 985.55. But the two metals are heading for a weekly loss.
Palladium settled at $1,397.90, and is on track to record its best weekly performance since April.
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