Economic news

Gold faces fourth weekly loss as burgeoning dollar saps appeal

2022.05.13 06:31

Gold faces fourth weekly loss as burgeoning dollar saps appeal
FILE PHOTO: A goldsmith wearing a protective face mask arranges golden bangles as the other talks to customers at a jewellery shop at the Grand Bazaar in Istanbul, Turkey, August 6, 2020. REUTERS/Murad Sezer

By Bharat Gautam

(Reuters) – Gold prices held ground near a three-month low on Friday as the strongest dollar in two decades continued to sap demand for greenback-priced bullion, setting up what could be the metal’s fourth consecutive weekly fall.

In choppy price action, spot gold was flat at $1,823.25 per ounce, as of 0244 GMT, hovering near its lowest level since Feb. 7 hit earlier in the session.

U.S. gold futures edged down 0.1% to $1,823.00.

“The fall through support by gold at $1,835.00, and the sell-off in other precious metals overnight, leave gold vulnerable to deeper losses and a potential test of support at $1,780.00 an ounce,” OANDA senior analyst Jeffrey Halley said.

The dollar steadied near a fresh 20-year high scaled on Thursday as concerns persisted that the U.S. Federal Reserve’s actions to tame inflationary pressures would crimp global economic growth, boosting the currency’s safe-haven appeal.

Bullion has lost 3.1% so far this week, its most in two months.

Last week, the U.S. central bank hiked its benchmark overnight interest rate by an aggressive half-a-percentage point.

Bullion is sensitive to rising U.S. short-term interest rates and bond yields, which raise the opportunity cost of holding it.

“Nominal yields will also climb, creating double-yield trouble for gold investors as the Fed will remain hawkish until inflation indicators fall,” said Stephen Innes, managing partner at SPI Asset Management.

Gold’s recent slide almost wipes out gains from a rally driven by safe-haven demand after Russia’s invasion of Ukraine in February. The conflict powered gold prices all the way to near-record levels in mid-March.

Spot silver was up 0.6% at $20.79 per ounce, platinum gained 0.9% to $952.02, and palladium rose 1.9% to $1,944.77. However, all were poised for weekly losses.

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 83,592.40 0.89%
ethereum
Ethereum (ETH) $ 1,910.90 0.99%
tether
Tether (USDT) $ 1.00 0.01%
xrp
XRP (XRP) $ 2.35 1.42%
bnb
BNB (BNB) $ 628.06 2.89%
solana
Solana (SOL) $ 128.67 5.12%
usd-coin
USDC (USDC) $ 1.00 0.00%
cardano
Cardano (ADA) $ 0.71483 3.75%
dogecoin
Dogecoin (DOGE) $ 0.172704 1.21%
tron
TRON (TRX) $ 0.212682 3.52%
staked-ether
Lido Staked Ether (STETH) $ 1,909.82 1.03%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 83,403.35 0.82%
pi-network
Pi Network (PI) $ 1.40 8.24%
leo-token
LEO Token (LEO) $ 9.80 0.86%
the-open-network
Toncoin (TON) $ 3.53 1.80%
chainlink
Chainlink (LINK) $ 13.68 2.20%
stellar
Stellar (XLM) $ 0.270771 1.23%
usds
USDS (USDS) $ 1.00 0.01%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,286.18 0.79%
hedera-hashgraph
Hedera (HBAR) $ 0.192471 0.70%
shiba-inu
Shiba Inu (SHIB) $ 0.000013 4.77%
avalanche-2
Avalanche (AVAX) $ 18.62 4.90%
sui
Sui (SUI) $ 2.30 1.73%
litecoin
Litecoin (LTC) $ 93.28 1.09%
polkadot
Polkadot (DOT) $ 4.44 2.46%
mantra-dao
MANTRA (OM) $ 6.86 3.47%
bitcoin-cash
Bitcoin Cash (BCH) $ 337.24 0.51%
ethena-usde
Ethena USDe (USDE) $ 0.999792 0.00%
weth
WETH (WETH) $ 1,910.49 1.10%
bitget-token
Bitget Token (BGB) $ 4.42 0.81%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 1.00 0.08%
hyperliquid
Hyperliquid (HYPE) $ 13.46 4.33%
whitebit
WhiteBIT Coin (WBT) $ 28.36 1.77%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,030.21 1.05%
monero
Monero (XMR) $ 211.52 0.04%
uniswap
Uniswap (UNI) $ 6.23 0.14%
susds
sUSDS (SUSDS) $ 1.04 0.08%
aptos
Aptos (APT) $ 5.34 0.25%
dai
Dai (DAI) $ 0.999858 0.00%
near
NEAR Protocol (NEAR) $ 2.56 3.68%
okb
OKB (OKB) $ 49.02 5.22%
pepe
Pepe (PEPE) $ 0.000007 5.27%
mantle
Mantle (MNT) $ 0.83496 5.01%
internet-computer
Internet Computer (ICP) $ 5.75 0.85%
ethereum-classic
Ethereum Classic (ETC) $ 17.76 0.84%
gatechain-token
Gate (GT) $ 21.64 0.23%
ondo-finance
Ondo (ONDO) $ 0.837942 3.52%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 83,528.38 0.98%
aave
Aave (AAVE) $ 169.33 1.58%
tokenize-xchange
Tokenize Xchange (TKX) $ 29.89 1.67%