Weekly gold fall stabilized as a result of rising rates and the dollar

Weekly gold fall stabilized as a result of rising rates and the dollar

Weekly gold fall stabilized as a result of rising rates and the dollar

Physically speaking, gold purchases surged this week in India, a major consumer, while local prices declined from all-time highs.

The opportunity cost of owning non-yielding gold is decreased by low interest rates.

Although contradictory US economic data caused gold to fluctuate by a percentage point on Friday, the metal recorded its first weekly loss in four weeks due to a stronger currency and higher Treasury rates.

As of 3:15 p.m. EST (2015 GMT), spot gold was up 0.1% at $2,044.21 an ounce, up from a previous session's decline of around 1%. A weekly price reduction of around 1% was planned.

US gold futures ended the day at $2,049.80, almost unchanged.

The US services industry slowed sharply in December, according to alternative statistics from the Institute for Supply Management (ISM), despite official figures showing US firms employed more people than anticipated in December.

First, gold saw some pressure as the Non-Farm Payrolls report exceeded expectations. But after that, we got ISM data that was a little bit worse than anticipated, so we started trading high ridge futures for the metal. "A shift in pattern has occurred," said David Megger, the director of the.

Both the 10-year Treasury yield and the US dollar reached their highest points in three weeks, on course for their best weeks since October and July, respectively.

Ole Hansen, head of commodities strategy at Saxo Bank, said in a note that "we see volatility playing out in a game of estimation regarding the number of rate cuts in the coming months," given that the U.S. Federal Reserve is heading toward a rate decrease. seen as a primary motivator of,

The market anticipates a roughly 67% likelihood of a Fed rate drop by March, according the CME FedWatch tool.

The opportunity cost of owning non-yielding gold is decreased by low interest rates.

Physically speaking, gold purchases surged this week in India, a major consumer, while local prices declined from all-time highs.

Platinum increased by 0.5% to $961.53, but it was expected to have its worst week in eight weeks. Silver increased by 0.8% to $23.17 an ounce, but it was expected to decrease for a second week.

Palladium dropped 0.9% to $1,027.11, a three-week low. This was the metal's ninth straight losing session. For the week, it was down 6.4%.