Rate Optimism Propels Gold Higher
Date
5/17/2024 9:12:43 AM
(MENAFN- Baystreet) Gold prices appeared set for a second consecutive weekly gain on Friday, after recent U.S. inflation data fueled expectations that the federal Reserve could cut interest rates this year.
Spot gold was up 0.1% at $2,379.14 U.S. per ounce. Bullion prices have gained 0.7% so far this week.
U.S. gold futures were flat at $2,383.20.
The dollar index was down 0.6% for the week so far, against its rivals, making gold less expensive for other currency holders.
Data this week showing signs of cooling inflation offered the U.S. Federal Reserve good news, but policymakers haven't openly shifted views yet about the timing of rate cuts investors are convinced will start this year.
Bullion is known as an inflation hedge, but higher rates increase the opportunity cost of holding non-yielding gold.
Spot silver fell 0.2% to $29.53 U.S. per ounce after hitting an over three-year high in the previous session, and palladium dropped 1.1% to $982.77.
Platinum rose 0.3% to $1,060.15 U.S., after hitting its highest levels since May 12, 2023 in the previous session. The metal has gained about 7% so far for the week.
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