Gold inch high; set weekly loss as the dollar remains strong

Friday’s gold price recovered after falling to a low of more than a month in the previous session.
Spot gold rose 0.3% to $ 1,758.10 per ounce by 0329 GMT and US gold futures rose 0.2% to $ 1,759.50. Precious metals fell 1.6% this week.
“So far, support at $ 1,750 has been maintained, but with a slight speculative short-term rise, bounces look poor,” said Jeffrey Halley, senior market analyst in Asia. Gold is facing another test at $ 1,750 as the dollar remains strong. ” OANDA’s Pacific Ocean.
Friday’s dollar approached its peak for almost three weeks, raising the cost of gold for buyers holding other currencies.
“If the $ 1,750 goes bankrupt, gold could target the $ 1,715 area, potentially providing long-term support around $ 1,675,” Harry added.
Thursday’s bullion fell 2.7% as the dollar index soared as an unexpected increase in U.S. retail sales last month could raise expectations for the Federal Reserve and reduce its stimulus sooner. ..
The Federal Open Market Committee’s two-day policy meeting will take place September 21-22.
As central bank stimulus diminishes, bond yields tend to rise and the opportunity cost of holding interest-free gold rises. It also helps push the dollar up and makes the bullion even heavier.
Fitch Solutions said in a memo that the easing of precious metals in 2022 has a neutral outlook for gold in the coming months.
“The Fed’s normalization of monetary policy, a strong outlook for global economic growth, and a temporary appreciation of the US dollar should cover gold prices,” Fitch said.
Silver fell 0.1% to $ 22.91 per ounce after hitting a low on Thursday in more than a month.
Platinum rose 0.9% to $ 941.31 and palladium fell 1.8% to $ 1,997.08.

Gold inch high; set weekly loss as the dollar remains strong

Source link Gold inch high; set weekly loss as the dollar remains strong

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