Monday, May 27, 2024

Gold prices rise due to the weakness of the dollar

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Gold prices were supported by a weaker dollar on Friday as investors waited for US jobs data to learn about the Federal Reserve’s plans to reduce asset purchases.

And gold on the spot traded up 0.2 percent at $ 1812.97 an ounce 0641 GMT, down 0.2 percent for the week.

U.S. gold futures are up 0.2 percent at $ 1814.80.

The dollar index has been hovering around a month, which increases the attractiveness of gold to holders of other currencies. The US currency is heading for a second straight week.

“We see the pre-emption of individuals who want to take advantage of the NFP,” said Stephen Innes, managing partner at SBI Asset Management.

The release of the weak number “would be very favorable for gold because it reinforces the highly cautious expectations of US Federal Reserve Chairman (Jerome) Powell … get a strong reading.”

The number of Americans filing for unemployment benefits since last week fell last week, the lowest level in 24 years, in August, ahead of the Department of Labor’s report on outstanding U.S. farm wage earners at 1230 GMT. .

Powell said last week that if job growth continues, the central bank will begin to cut property purchases this year, but will be cautious in deciding whether to raise interest rates.

Although gold is considered a protector against inflation and monetary volatility by unprecedented stimulus measures, it lowers the opportunity cost of holding a yellow metal that does not yield low interest rates.

Among other precious metals, silver rose 0.3 percent to $ 23.96 an ounce.

Platinum was up 0.3 percent at $ 1001.66 and Palladium was up 0.6 percent at $ 2415.49.

See also  Oil has been falling due to a stronger dollar and worries about demand in China

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Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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