Gold prices moved slightly higher on Friday, despite the fact that the dollar maintained its position at its highest level in the last 20 years. This kept prices on track for their worst weekly decline in eight weeks, as it led to a decrease in demand for metal.
By 3:23 GMT, the spot price of gold had increased by 0.1 percent, reaching $1,744.07 per ounce. Gold futures in the United States remained unchanged at $1,739.70 per ounce.
Gold priced in dollars remained relatively close to the nine-month lows that were reached on Wednesday, despite the fact that the dollar maintained its position close to its highest level since 2002.
On Thursday, two of the Federal Reserve’s most vocal hawks said that they would support another interest rate increase of 75 basis points later this month but a downshift to a slower pace after that. However, both of them downplayed the risk that higher borrowing costs could push the United States into a recession.
“Gold bulls were looking for some relief from recognised Fed hawks like Waller and Bullard, given that the narrative of the market has shifted from being concerned about inflation to being concerned about growth. But there was not a single dove in sight, “Stephen Innes, managing partner at SPI Asset Management, was the one who made the statement.
The opportunity cost of owning a non-yielding asset like gold rises when short-term interest rates in the United States rise.
This week, the price of gold has decreased by around 3.8 percent. It is quite possible that this will be their fourth consecutive weekly drop, and their worst since the middle of May.
According to Innes, “We should anticipate U.S. yields to stay steady into next week’s heavy U.S. data docket, with CPI (consumer price index) the headliner, and as a result, gold may have difficulty climbing over $1,750 to $1,600.”
After rising in the previous two days, the yield on the benchmark 10-year Treasury note in the United States levelled out on Friday.
Asian stocks were monitored throughout the previous night Following the announcement that British Prime Minister Boris Johnson would step down, the value of the pound started to recover some of the ground it had lost in previous days. This helped Wall Street to post gains.
The price of silver on the spot market fell by 0.3 percent to $19.28 per ounce, while the price of platinum rose by 0.1 percent to $874.50; nonetheless, both metals were expected to fall for the week.
The price of palladium increased by 0.6 percent to $2,002.50 and has increased by around 2 percent over the course of the week.