This Friday, July 14, the gold price continue with your uptrend after having scored increases in the previous four sessions. This upturn is due to rising expectations of a pause in the rise in interest rates in the US, which is leading bullion to experiment its biggest weekly increase since April.
He gold cash falls slightly by 0.2%, standing at US$1,955.90 per ounce. Over the week, however, the metal managed a 1.6% gain and had previously reached its highest level since June 16.
As for US gold futures, a rise of 0.6% is registered, standing at u$s1,964.80.
Benchmark US Treasury yields rose after hitting their lowest in two weeks on Thursday. This made the gold bars less attractive to investors.
Dollar, gold and interest rates
The Governor of the Federal Reserve, Christopher Wallerexpressed on Thursday that he was not willing to consider the fight against inflation resolved and was in favor of more interest rate adjustments during this year. This view is reflected in the June minutes of the Federal Open Market Committee.
However, the markets anticipate an increase of 25 basis points in interest rates during the Fed meeting scheduled for July 25-26, according to the CME’s Fedwatch tool.
The increase in interest rates iIncreases the opportunity cost of holding gold bullionor, which do not generate interest. The prospect of a slowdown in inflation in the US promptedl dollar to reach 15-month lows.
Although the advance of gold during the week has been less than the general fall of the dollarthis highlights the risk of a reversal if short covering strengthens the US currencyOle Hansen, Saxo Bank’s head of commodity strategy, said in a note.
As for other precious metals, spot silver shows a decrease of 0.5%, settling at US$24.74 per ounce. However, he was headed towards its biggest weekly increase since March. For its part, platinum registered a drop of 0.2%, settling at US$970.47, while palladium experienced a fall of 1.1%, standing at US$1,280.57. Both metals were heading for their second straight weekly gain.
Source: Ambito
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