Gold prices set for first weekly decline in five on dollar strength


By Brijesh Patel

(Reuters) – edged lower on Friday, heading for their first weekly decline in five, as a stronger dollar made bullion more expensive for holder of other currencies and offset support from lower U.S. bond yields and weak economic data.

Spot gold was down 0.2% at $1,803.33 per ounce, as of 0314 GMT. Bullion is down 0.4% this week. U.S. gold futures fell 0.1% to $1,803.90.

“Gold being a go to alternative for paper currency and with seeing the dollar bit higher is the catalyst that nudging gold back,” said DailyFX currency strategist Ilya Spivak.

The dollar index held close to a 3-1/2-month peak against its rival and was heading for its second straight weekly rise.

Risk appetite in wider financial for most of this week was fragile due to worries over the coronavirus’ Delta variant impacting global economic recovery, sending investors to take refuge in the dollar.

“We expect gold to remain range bound in the coming weeks. However, inflation will remain a key driver of in the coming months, supporting prices in the near term,” Fitch Solutions said in a note.

Focus now shifts to next week’s U.S. Federal Reserve meeting for more clues on monetary policy going forward.

The European Central Bank on Thursday pledged to keep interest rates at record lows for even longer and warned that the rapidly spreading Delta variant poses a risk to the euro zone’s recovery.

Offering some respite to gold, yields on U.S. Treasuries eased after an auction of $16 billion in 10-year TIPS was bid at a record low.

Data showed the number of Americans filing new claims for unemployment benefits rose to a two-month high last week.

Silver slipped 0.5% to $25.34 per ounce and was set for its third weekly fall.

Palladium rose 0.3% to $2,725.19, and platinum was flat at $1,092.64.


(Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi Aich)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link


Please enter your comment!
Please enter your name here