Report

rss

Iraq News

Kurdistan

Economy

World

All News

PRECIOUS-Gold set for strongest week in two months as Fed in no rush to hike rates

Category: Economy

Date: 2021-07-30T11:34:23+0000
PRECIOUS-Gold set for strongest week in two months as Fed in no rush to hike rates

Shafaq News/ Gold prices held firm near a two-week high on Friday, heading for their biggest weekly gains in more than two months after the U.S. Federal Reserve cemented investors hopes that interest rates are going to stay low for some time.

Lower interest rates reduce the opportunity cost of holding non-yielding bullion.

Spot gold was up 0.1% at $1,829.10 per ounce by 0917 GMT, after hitting its highest since July 15 at $1,832.40 on Thursday. It is up 1.5% so far for this week.

U.S. gold futures eased 0.2% to $1,832.80.

"The Fed's accommodative stance this week is sinking the dollar and Treasury yields are relatively low. There is a bit of fluctuation but overall these factors have been quite supportive for gold," said Xiao Fu, head of commodity market strategy at Bank of China International.

Fed Chair Jerome Powell on Wednesday said the U.S. job market still had some ground to cover before it would be time to pull back support and that it was "ways away" from considering interest rate hikes.

Meanwhile, data showed the U.S. economy expanded at a 6.5% annualised rate in the second quarter, but growth fell short of economists' expectations.

Dovish remarks by the U.S. central bank and underwhelming economic data pushed the dollar to a one-month low and on track for its biggest down week since May, making gold more appealing for other currency holders.

"As the realization that the Fed is unlikely to tighten its policies anytime soon sinks in, the outlook for the U.S. dollar turns into bearish territory," said Ricardo Evangelista, a senior analyst at ActivTrades, in a note.

"As the U.S. dollar risk currently lies to the downside, the precious metal could continue to find support in the short term."

Elsewhere, silver rose 0.2% to $25.59 per ounce and was headed for its first weekly gain in four.

Palladium rose 0.2% to $2,651.85, while platinum slipped 0.8% to $1,052.14.

related

Gold prices in the Iraqi local markets today

Date: 2021-01-28 09:56:56
Gold prices in the Iraqi local markets today

Iraq ranks 38th in the list of largest gold reserves worlwide

Date: 2021-05-09 06:57:37
Iraq ranks 38th in the list of largest gold reserves worlwide

Gold rises as the dollar decline

Date: 2020-09-25 10:07:40
Gold rises as the dollar decline

Gold prices in the Iraqi local markets today

Date: 2021-02-11 09:10:32
Gold prices in the Iraqi local markets today

Gold pauses retreat as investors lock in on Fed's Jackson Hole event

Date: 2021-08-27 11:57:01
Gold pauses retreat as investors lock in on Fed's Jackson Hole event

Gold rises against faltering dollar ahead of U.S. Senate Stimulus vote

Date: 2020-12-29 09:00:24
Gold rises against faltering dollar ahead of U.S. Senate Stimulus vote

Gold on a highway down for the fifth session in a row

Date: 2021-02-17 09:50:57
Gold on a highway down for the fifth session in a row

Gold little changed as investors await Fed's view on stimulus outlook

Date: 2021-06-16 09:55:46
Gold little changed as investors await Fed's view on stimulus outlook