Gold eyes best week in nearly 2 months on Fed pause hopes
8712 Mins Read
Bullion has gained 1.7% so far in the week
Silver set to snap three consecutive weeks of declines
Current gold mkt sentiment remains constructive – analyst
Platinum, palladium set for weekly losses
By Arundhati Sarkar
June 2 (Reuters) – Gold prices were set on Friday for their biggest weekly gain in nearly two months, as a softer dollar and hopes for a pause in the Federal Reserve’s tightening campaign bolstered bullion’s appeal.
Spot gold held steady at $1,979.24 per ounce by 0457 GMT. U.S. gold futures were little changed at $1,996.60.
Bullion has gained 1.7% so far in the week, heading for its best week since the week ended April 7.
Current gold market sentiment remains constructive, and prices could move a little higher from here as the Fed is expected to stay on hold in June, said Edward Meir, a metals analyst at Marex.
Philadelphia Fed President Patrick Harker said on Thursday U.S. central bankers should not raise interest rates at their next meeting, even though high inflation is coming down at a “disappointingly slow” pace.
Markets now see a 73.7% chance of rates remaining unchanged in June. Gold, which does not yield any interest of its own, loses appeal when interest rates rise.
The dollar index dipped to a one week-low, making gold less expensive for buyers holding other currencies.
Meanwhile, the U.S. Senate passed bipartisan legislation backed by President Joe Biden that lifts the government’s $31.4 trillion debt ceiling, averting what would have been a historic, first-ever default.
On the data front, investors will keep a tab on the U.S. Labor Department’s non-farm payrolls (NFP) report due at 1230 GMT.
The figures could again sway “market opinion with regards to what the FOMC does next week”, said Tim Waterer, chief market analyst at KCM Trade.
A strong labour market print could see a bounce-back in the dollar, which would not help gold, Waterer added.
Spot silver ticked 0.1% lower to $23.92 per ounce and was up 2.7% for the week.
Platinum steadied at $1,006.76, and palladium rose 0.3% to $1,399.02 – both set for weekly losses.
