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Gold prices fell on Friday after gaining more than 1% in the previous session, although hopes of a possible pause in interest rate hikes by the US central bank helped boost bullion prices on a weekly basis.
spot gold fell 0.2% to $1,963.41 an ounce by 05:15 GMT, but headed for a 0.8% weekly gain. US gold futures contract remained unchanged at $1,978.60.
Gold, like many other assets, has been fluctuating in ranges, with traders reluctant to cross too many boundaries with the gold price. US Federal Reserve Tim Waterer, KCM Trade’s head of market analysis, said the meeting is coming.
“Today’s slight drop is natural after a spike in terms of price consolidation and some profit.”
The dollar index hovering near Thursday’s low. A weaker dollar makes gold cheaper for overseas buyers.
The focus now shifts to the May US consumer inflation report, due on June 13, ahead of the Fed meeting, which will help investors better understand the health of the economy. largest economy in the world.
The International Monetary Fund on Thursday urged the US Fed and other global central banks to “continue their course”. monetary policy roads and remain cautious in fighting inflation.
Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai, said the overall trend for gold remains positive and prices are waiting for another trigger to move higher.
Markets are pricing in a 76% chance the Fed will hold its ground next week, after having raised rates at every meeting since March 2022. However, the possibility of a 25 basis point rate hike in July remains. is 51%.
Increasing interest rates increases the opportunity cost of holding non-yielding bullion.
spot silver up 0.1% to $24.2435 an ounce, palladium up 0.2% to $1,364.90.
platinum rose 0.3% higher to $1,013.53 and is set to post weekly gains in two weeks.
