Gold prices held steady on Friday after a sharp rise in the previous session, buoyed by a dip in U.S. Treasury yields, as investors grew confident the Federal Reserve will lower interest rates in September, reports Reuters.
Spot gold was down 0.1% to $2,422.99 per ounce as of 1351 GMT, after a 1.9% rise on Thursday. U.S. gold futures held steady at $2,462.
However, the bullion was down about 0.8% so far this week, on track for its biggest weekly decline since June 7. Prices fell as much as 3% on Monday after investors liquidated positions in tandem with a broader equities sell-off.
"In the medium term, the outlook for gold remains positive, with any dips likely to be short-lived due to underlying macroeconomic factors," said Zain Vawda, market analyst at MarketPulse by OANDA. "Yesterday's U.S. jobless claims data eased recession concerns, boosting gold prices. Additionally, comments from the Fed this week have supported the notion that rate cuts may be forthcoming."
The dollar was down 0.1% against its rivals, making gold more attractive for other currency holders, while the Benchmark 10-year note yields slipped.
Spot silver was down 0.9% to $27.29 per ounce and platinum fell 0.9% to $922.05. Both metals were poised for weekly losses.
Palladium fell 1.3% to $910.25, but was set for a weekly gain.
Gold holds ground on US Fed rate-cut hopes, lower yields
FE Team | Published: August 09, 2024 22:37:58
Gold holds ground on US Fed rate-cut hopes, lower yields
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