2023-08-26 12:01:56
Gold fell, in Friday’s session, snapping a series of gains that lasted for four consecutive sessions, following Federal Reserve Chairman Jerome Powell left the door open for more interest rate hikes.
Gold in spot transactions fell 0.21 percent to $1,913.3643 an ounce, and US gold futures contracts were settled down 0.4 percent, to $1,939.90.
The dollar and 10-year Treasury yields rose, reducing the attractiveness of non-yielding bullion.
Over the course of the week, gold achieved weekly gains of regarding 1.4 percent for the first time in 4 weeks, recording the best weekly performance since mid-July.
The Fed chairman’s speech put pressure on gold prices, said Philip Striple, chief market strategist at Blue Line Futures in Chicago, as Powell looks to continue keeping interest rates higher for longer, while remaining dependent on the data going forward.
Powell said, in a speech at an economic summit in Jackson Hole, Wyoming, that policymakers “will tread carefully as we decide whether to continue tightening,” but he also made clear that the bank has not yet concluded that the benchmark interest rate is high enough now to be sure. return of inflation to the 2 percent target.
“Gold’s reaction to Powell’s signal that the Fed is suspended but watchful is somewhat disappointing, suggesting that demand at current levels may be limited,” said Tae Wong, an independent metals trader in New York.
“We are probably in a trading range, although a close below $1,900 might lead to some liquidation.”
Gold also benefited from growing momentum that policymakers at the European Central Bank will hold off on raising interest rates amid worsening growth prospects.
As for other precious metals, spot silver rose 0.32 percent to $24.2115 an ounce, and palladium fell 1.37 percent to $1,223.1674. While platinum increased 1.12 percent to $ 943.9819.
Silver and Platinum had their best week since July 14. While the palladium incurred losses for the second week in a row.
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