Gold rose sharply on banking instability and pared weekly losses

Gold rose sharply on banking instability and pared weekly losses

The metal rose 1%, but closed the week with losses after starting at a price of US$2,022.70 per ounce.


Gold rose on Friday, recovering some of the losses from earlier in the week, on renewed concerns about banking instability.

Spot gold gained 1% to $1,979.25 an ounceafter gaining as much as 1.3% earlier in the session.

However, the precious metal ended the week with losses. At the beginning of May it shot up to US$2,072.19 per ounce, just a few cents from its all-time high of US$2,072.49.but since then it has lost about 5% after the release of data that showed a tight labor market and inflation still high.

Fed Chairman, Jerome Powell said that the path forward for monetary policy has become less certain, But the fallout from recent banking sector troubles is taking some of the pressure off the US central bank to raise rates.

The United States Secretary of the Treasury, Janet Yellen told bank CEOs on Thursday that more mergers may be necessary after a spate of lender failures.reported CNN.

“Gold has risen more because of Yellen’s comments than because of Powell, who has been more cautious and suggested that the Fed could leave rates on hold at the June meeting unless data in the coming weeks is especially problematic. “said Tai Wong, an independent metals trader in New York.

“Nothing scares the market more than banking jitters ahead of a weekend,” the trader said.

In other precious metals, spot silver rose 1.6% to $24.02 an ounce; platinum improved 1.3% to u$s1,071.40; and palladium rose 4.2% to $1,510.50.

Source: Ambito

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