Gold and the dollar (archive)
Friday, May 12, 2023 / 09:48
Gold prices fell today, Friday, with the rise of the dollar, but continued economic concerns and the confrontation over the US debt ceiling curbed the losses of the yellow metal.
By 03:01 GMT, spot gold fell 0.3% to $2010.29 an ounce, down 0.3% during the week. And US gold futures fell 0.3% to 2015.00 dollars.
Brian Lane, managing director at Gold Silver Central, said that while investors view the uncertainties surrounding US debt ceiling talks and expect a pause in US interest rate hikes, there appears to be a modicum of profit-taking driving prices lower.-
Gold rose yesterday, Thursday, after data showed a jump in weekly jobless claims in the United States and an annual increase in producer prices last month at the lowest pace in more than two years, but the yellow metal lost its luster with the rise of the dollar, which makes gold more expensive for buyers abroad. .-
Meanwhile, a White House spokesman said yesterday, Thursday, that a meeting scheduled for today on the debt ceiling between President Joe Biden and senior lawmakers had been postponed, and the two sides agreed to meet next week.
Gold tends to gain during times of economic or financial uncertainty as a safe haven, while low interest rates also increase demand for non-yielding assets.
The markets are now factoring in a 92.8% chance that the Federal Reserve will keep interest rates at their current level in June.
As for other precious metals, silver fell in spot transactions by 0.8%, to $23.98 an ounce. Platinum fell 1% to $1,083.24, while palladium rose 0.5% to $1,558.50.