24hoursworld

Gold posted its first weekly rise in five weeks

Gold posted its first weekly rise in five weeks

According to Bart Melek, head of commodity market strategy at TD Securities, until a new catalyst occurs, such as next week’s jobs or consumer price data, Gold is likely to remain range bound between the $1,830 and $1,850 levels.

“With China’s recovery, gold consumption may remain strong and people may buy the metal to hedge against inflation,” Melek added.

The dollar index, in reverse, was headed for its first weekly loss in five yearsmaking the greenback-priced bullion more attractive to overseas buyers, while benchmark US 10-year yields slid lower from near a four-month high.

The president of the Atlanta Fed, Raphael Bostic, was in favor of the US central bank sticking with “constant” quarter-point rate hikes.while the governor of the Fed, Christopher Waller, stated that strong economic data could push rates above the 5.1%-5.4% range,

Although gold is known as a hedge against inflation, Rising rates raise the opportunity cost of holding bullion, which does not earn interest and makes it a less attractive bet.

Among other precious metals, spot silver rose 1% to $21.09 an ounce, posting its biggest weekly gain since January; Platinum added 1.3% to $972.64 and palladium gained 0.8% to $1,459.91.

Source: Ambito

Leave a Reply

Your email address will not be published.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

Latest Posts