Gold jumps as dollar weakens on Fed rate-hike uncertainty
Reuters
Published Oct 21, 2022 02:29PM ET
By Seher Dareen
(Reuters) - Gold prices were on track to gain for the week, rising more than 1% on Friday as the dollar weakened amid reports of a potential debate amongst the U.S. Federal Reserve officials about the pace of rate hikes.
Spot gold was up 1.5% at $1,652.21 per ounce by 2:06 p.m. ET (1806 GMT). U.S. gold futures settled up 1.2% to $1,656.3.
The WSJ reported that Fed officials were barrelling toward another interest-rate rise of 0.75 percentage point in November, while some have begun signalling their desire to slow down the pace of increases soon.
"The Wall Street Journal article which mentions the pace of rate hikes is being given a lot of share of mind for (market)participants," said Daniel Ghali, commodity strategist at TD Securities.
San Francisco Federal Reserve Bank President Mary Daly on Friday said the central bank should avoid putting the U.S. economy into an "unforced downturn" by overtightening, adding that the Fed is nearing a point where it should slow rate hikes.
Gold is sensitive to rising interest rates, which increase the opportunity cost of holding bullion that does not pay interest.
Prices were now up about 0.6% for the week, after rebounding from their lowest level since end-September, touched earlier in the day.
With gold hitting a low, people came in and started buying it, said Michael Matousek, head trader at U.S. Global Investors.
The dollar index gave up earlier gains and slipped 0.6%, making gold less expensive for overseas investors. [USD/] [US/]
On the physical side, demand for gold in India picked up pace this week as some consumers bought into a retreat in domestic prices ahead of festivals. [GOL/AS]
Elsewhere, spot silver rose 2.7% to $19.16 per ounce, platinum gained 1.9% to $931.00 while palladium fell 1.8% to $2,020.34.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.