Gold rate today: Prices hits 1-month high as dollar weakens, set for weekly gain | India Business News

Gold prices scaled a one-month peak on Friday, riding on a weaker U.S. dollar that has also put bullion on track for a third straight weekly gain.
Spot gold was steady at $1,867.33 per ounce, as of 0539 GMT, after hitting its highest level since May 9 of $1,873.79. Gold prices have risen about 0.8% so far this week.
U.S. gold futures edged up 0.1% to $1,872.10.
The dollar edged lower, making greenback-priced bullion more attractive for overseas buyers.
“We think prices have seen an important low around $1,828 this week, and with bullish momentum having returned, a move towards $1,900 seems feasible,” City Index senior market analyst Matt Simpson said.
Gold prices rose more than 1% on Thursday, supported by a dip in the dollar and data that showed U.S. private payrolls rose less than expected last month.
Signs of an economic crisis can be supportive for gold demand, as investors consider it a safe-haven asset.
“We also note that large speculators and managed funds increased their net-long exposure to gold last week, for the first week in six, which suggests there’s support at lower levels,” Simpson added.
Meanwhile, the U.S. Federal Reserve is likely to continue tightening monetary policy beyond the half-percentage point interest rate hikes expected at each of its next two meetings, two policymakers signalled on Thursday.
Higher short-term U.S. interest rates increase the opportunity cost of holding gold, which bears no interest.
Spot gold may test a resistance at $1,879 per ounce, a break above could lead to a gain to $1,892, according to Reuters technical analyst Wang Tao.
Spot silver , which gained 0.2% to $22.33 per ounce, has climbed 1.1% so far this week.
Platinum eased 0.5% to $1,017.57, but is set for a weekly uptick of about 7%, its most since June 2021.
Palladium climbed 1% to $2,073.20.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: