Gold sees weekly decline amid hawkish Fed signals

Gold rose Friday on the back of a weak dollar but was still on the cusp of its first weekly decline in three weeks, weighted by signals from US central banks that interest rate hikes are on the horizon.

 

Spot gold rose 0.1% to $1,763.17 an ounce by 0303 GMT, down about 0.4% weekly.

 

US gold futures rose 0.2% to $1,765.50.

 

Gold continues to be supported by growing recession risks, the ongoing war in Ukraine and the peak of the US dollar, according to a note by Fitch Solutions.

 

"On the other hand, growing optimism about the Chinese economy, still high risks that the US Federal Reserve will raise rates further and more aggressively than the market expects, and the inflation peak in the third quarter will continue to put pressure on gold".

 

As some respite for gold, the rival safe haven dollar index declined, making bullion cheaper for overseas buyers.

 

However, the US currency was still aiming for its best week in a month as hawkish remarks by Fed officials and stronger-than-expected monthly domestic retail sales stalled a pullback triggered by signs of softening inflation.

 

Markets are currently estimating an 87% chance of a 50bps rate hike at the Fed's December meeting after four consecutive 75bps hikes.

 

High interest rates discourage investment in gold that does not pay interest.

 

After several months of falling, gold prices rose on expectations that the pace of US rate hikes will slow down, but analysts say that institutional investors are cautious and further growth may be elusive.

 

Other metals, spot silver rose 0.8% to $21.11 an ounce, platinum added 0.4% to $984.50 and palladium XPD= rose 0.7% to $2,020.21. However, they all ended the week with a decline.

18 November, 2022
387
views

Read more:

World Bank: approved $350 million financing for RISE-II operation in Pakistan

07 December, 2023

China keeps Loan Prime rate steady at record Lows.

14 December, 2023

'A lackluster January through May': One chart shows what stock investors can expect in a crucial election year

30 December, 2023

With Bitcoin Spot ETF Approvals, Halving and Incoming Upgrades, What Should You Expect from BTC in 2024?

05 December, 2023

Polygon Labs Announced Upcoming Updates for Products and Events Expected in December

28 November, 2023

Cross-Chain Protocol Wormhole Secures $225M in Funding, Now Valued at $2.5B

22 November, 2023

United Kingdom Seeks to Strengthen Its Digital Asset Sector

14 November, 2023

The Dow Jones has seen a dreaded 'death cross.' Here's what it means.

06 November, 2023

USDT Accounts for 80% of All Crypto Transactions in Brazil in 2023

30 October, 2023

US SEC Approves Grayscale’s Ethereum ETF Filing

22 October, 2023

Binance Secures New Euro Banking Partners to Resume Fiat Transactions

16 October, 2023

Bitcoin Is Good Hedge in Current Geopolitical Tensions, Says Paul Tudor Jones

10 October, 2023

Circle Intervenes in SEC Case against Binance, Defends Stablecoins’ Regulatory Status

29 September, 2023

Web3 Startup IYK Raised $16.8M in Recent Funding Round Led by A16z

27 September, 2023

Bybit to Suspend UK Operations in Response to FCA’s New Rules

24 September, 2023

Celsius Former Chief Revenue Officer Pleads Guilty to Criminal Charges, Awaits Sentencing

15 September, 2023

US Judge Dismisses Class Action Suit against Uniswap

31 August, 2023

Arrange a call