Gold set for best week in 9 as dollar softens ahead of US data

  • 2/2/2024
  • 00:00
  • 3
  • 0
  • 0
news-picture

LONDON: Gold prices were poised for their biggest weekly gain in nine weeks on Friday as the dollar and Treasury yields retreated, while traders awaited key US jobs data due later in the day for clues on when the Federal Reserve could start rate cuts, according to Reuters. Spot gold was steady at $2,055.59 per ounce by 11:03 a.m. Saudi time. Bullion has climbed nearly 2 percent so far this week, set for its best weekly gain since early December. US gold futures edged 0.1 percent higher to $2,072.70. “Fed is unlikely to cut rates in March, but market participants are sure that its going to start cutting rates after that ... the remarks were bullish for gold,” Brian Lan at Singapore-based dealer GoldSilver Central said. Lower interest rates boost non-yielding bullion’s appeal. Spot gold rose nearly 1 percent on Thursday after data from the US Labor Department showed initial jobless claims rose more than expected last week. A separate report showed that US worker productivity grew faster than expected in the fourth quarter. Investor focus will shift to US non-farm payrolls data due at 4:30 p.m. Saudi time. Concerns over the regional banking sector in the US, increased the appeal for safe-haven assets such as bullion and Treasury bonds. Yields on benchmark 10-year Treasury notes, which are inversely related to bond prices, languished near their lowest levels seen in 2024. The dollar index has dropped 0.4 percent so far this week. Fed Chair Jerome Powell pushed back on the idea of an interest rate cut in the spring, but expressed confidence in inflation moving toward the desired 2 percent range. Money market pricing shows traders are nothing but sure about a rate cut in May. Other precious metals were also trading flat, with spot silver at $23.18 per ounce, platinum at $913.18, and palladium at $962.50.

مشاركة :