Gold prices held near one-month lows on Friday, disregarding cooler-than-expected U.S. inflation figures for last month. Bullion is set to conclude its weakest week in seven as the U.S. dollar and bond yields remained strong.
Spot gold increased by 0.1 percent to $1,913.95 per ounce by 0347 GMT, but remained close to its lowest level since July 7 reached earlier in the day. U.S. gold futures were down 0.1 percent at $1,946.20.
Gold rose by as much as 0.8 percent on Thursday after data revealed that the U.S. consumer price index (CPI) rose by 3.2 percent on an annual basis, slightly lower than the Reuters poll forecast of 3.3 percent. This sparked speculation that the U.S. central bank is unlikely to raise interest rates again in 2023.
The increase in interest rates negatively affects gold as it tends to raise bond yields, thereby increasing the opportunity cost of holding non-yielding bullion.
“Once the CPI dust had settled, markets seemed to remember that core CPI at 4.7 percent is still not great – even if it was slower than expected,” said Matt Simpson, a senior analyst at City Index, noting that gold’s upward movement lacked conviction.
“We also had Fed member Mary Daly putting a fly in the dovish ointment, saying whether another hold or hike at the Fed’s next meeting is ‘yet to be determined.’ And that saw the U.S. dollar regain its strength.”
Gold prices have declined by about 1.4 percent so far this week as the U.S. dollar index and benchmark 10-year Treasury bond yields were both on track for their fourth consecutive weekly gain
Denial of responsibility! SamacharCentrl is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
Denial of responsibility! Samachar Central is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.