- Write by:
-
Saturday, May 7, 2022 - 13:29:14
-
427 Visit
-
Print
Mining News Pro - Gold edged up on a weaker dollar on Friday, but is still on course for a third consecutive weekly decline, with the metal facing pressure from prospects of aggressive rate hikes from the US Federal Reserve.
Spot gold rose 0.5% to $1,887.01 per ounce by noon ET, continuing its recovery after slumping to a two-month low. US gold futures gained 0.5% as well, trading at $1,887.80 per ounce.
Meanwhile, the dollar index slipped 0.3% after hitting a 20-year high, making gold less expensive for overseas buyers.
But capping bullion’s upside, benchmark US Treasury yield strengthened near the key 3% level, with stronger-than-expected jobs data perceived as building the case for bigger interest rate hikes.
“Gold traders basically saw the non-farm payroll report as another confirmation the Fed is going to remain on cruise control with delivering point rate increases over these next couple of policy meetings,” Edward Moya, a senior analyst with OANDA, told Reuters.
The bond market sell-off would also continue to weigh on gold, Moya added.
However, Saxo Bank analyst Ole Hansen wrote in a note that overall, the outlook for gold was positive, “driven by the need to diversify from volatile stocks and bonds as inflation becomes increasingly imbedded and the ongoing geopolitical concerns.”
On Wednesday, the US central bank raised its benchmark rate by half a percentage point, the most in 22 years, although Chairman Jerome Powell explicitly ruled out raising rates by three-quarters of a percentage point in a coming meeting.
Short Link:
https://www.miningnews.ir/En/News/621232
China’s Zhaojin Mining Industry said on Wednesday that its A$733 million ($477.8 million) offer to buy Australia’s ...
Toronto-listed miner OceanaGold Corp said on Wednesday it will raise 6.08 billion pesos ($106 million) through an ...
Gold’s record-setting rally this year has puzzled market watchers as bullion has roared higher despite headwinds that ...
AbraSilver Resource said on Monday it has received investments from both Kinross Gold and Central Puerto, Argentina’s ...
Gold took a tumble as haven demand waned after geopolitical tensions eased in the Middle East.
The four largest indigenous communities in Chile’s Atacama salt flat suspended dialogue with state-run copper giant ...
A prefeasibility study for Predictive Discovery’s (ASX: PDI) Bankan gold project in Guinea gives it a net present value ...
A Native American group has asked all members of a US appeals court on Monday to overturn an earlier ruling that granted ...
Representatives from the Peñas Negras Indigenous community, in northwestern Argentina, clashed with heavily armed police ...
No comments have been posted yet ...