Gold set to notch third-straight weekly gain amid dollar slump
Investing.com
Published Jul 28, 2017 01:55PM ET
Investing.com – Gold prices traded higher on Friday, as the dollar remained under pressure at fourteen-month lows, after investor expectations grew the Federal Reserve would keep rates low for longer, following data showing inflation remained subdued.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange rose by $9.53, or 0.75%, to $1,269.52 a troy ounce.
Gold recouped some of its losses sustained earlier during the week, as traders mulled over a downward revision in first-quarter gross domestic product (GDP) which offset second-quarter gross domestic product that met expectations.
U.S. gross domestic product (GDP) increased 2.6% in the second quarter, meeting expectations, while first quarter GDP was revised down to 1.2%, the Bureau of Economic Analysis said on Friday.
The data also revealed a slowdown in the annual pace of inflation, as the U.S. GDP price index, the broadest inflationary indicator, dipped more-than-expected to 1%, adding to recent concerns over the slowing pace of inflation.
A slowdown in inflation has proven a key concern among Fed members, who voted on Wednesday to keep the central bank’s benchmark rate unchanged.
In a falling interest rate environment, investor appetite for gold weakens as the opportunity cost of holding the precious metal reduces relative to other interest-bearing assets such as bonds.
Other precious metals capitalized on a slump in the dollar, as silver futures rose 0.66% to $16.683 while platinum futures rose by 1.03% to $935.90.
Copper traded at $2.880, up 0.09%, while natural gas, declined by 0.78% to $2.944.
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Written By: Investing.com
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