Gold prices inch higher as dollar softens set for weekly loss 1

Gold prices inch higher as dollar softens; set for weekly loss - Chief Idea

By Joanne Cassar / 08. Jul 2022

AssetsFX - Ultra Trading - Chief Idea

Gold prices inch higher as dollar

>Gold firmed on Friday as the dollar came slightly off two-decade highs, but bullion was set to post its biggest weekly drop in more than a month as the elevated greenback hit demand.

>Spot gold firmed 0.3% to $1,744.07 per ounce by 0106 GMT. U.S. gold futures rose 0.2% to $1,742.50.

>Gold prices have lost about 3.7% this week. It is likely to be their fourth straight weekly fall, and worst since mid-May.

Gold firmed on Friday as the dollar came slightly off two-decade highs, but bullion was set to post its biggest weekly drop in more than a month as the elevated greenback hit demand.

AssetsFX


Spot gold firmed 0.3% to $1,744.07 per ounce by 0106 GMT. U.S. gold futures rose 0.2% to $1,742.50.

The dollar edged down from 20-year highs, taking some weight off greenback-priced gold.

🎩Top THREE Award-Winning Brokers in 2022🎩
LiteFinance | IC Markets | Avatrade

Gold prices have lost about 3.7% this week. It is likely to be their fourth straight weekly fall, and worst since mid-May.

U.S. equities rose with Treasury yields overnight, as investors bet on economic light at the end of the Federal Reserve’s rate hiking tunnel, while oil prices rose on supply concerns.

Benchmark U.S. 10-year Treasury yields dipped on Friday, buoying gold.

The number of Americans filing new claims for unemployment benefits unexpectedly rose last week and there are growing signs that demand for labor is cooling, with layoffs surging to a 16-month high in June, as the Federal Reserve’s aggressive monetary policy tightening stokes recession fears.

Two of the Fed’s most vocal hawks on Thursday said they would support another 75 basis-point interest rate increase later this month but a downshift to a slower pace afterward, even as both downplayed the risk of higher borrowing costs pushing the U.S into recession.

Rising short-term U.S. interest rates and bond yields increase the opportunity cost of holding gold, which yields no interest.

Keep Pushing Your Profitable Trading With AssetsFX

Spot silver rose 0.5% to $19.28 per ounce, and platinum gained 0.6% to $878.40, but both were set for weekly losses. Palladium climbed 0.8% to $2,006.51, and has gained about 2.3% for the week. Source: CNBC.