Gold flat; set for weekly jump on hopes of Fed pause, banking woes
Shafaq News / Gold prices were flat on Friday but are set for their biggest weekly gain in nearly two months, as hopes of a pause in the U.S. Federal Reserve's interest rate hike cycle and banking worries in the country bolstered the safe-haven metal's appeal.
Spot gold was little changed at $2,050.63 per ounce as of 0349 GMT, but was up 3% for the week. U.S. gold futures were up 0.1% to $2,058.50.
On Thursday, prices jumped to $2,072.19, just shy of a record high of $2,072.49 hit in 2020, after the Fed signalled a likely pause in its rate hike tightening campaign.
Fed Chair Jerome Powell pushed back on market expectations of rate cuts this year and highlighted that the central bank would watch incoming data to determine future monetary policy decisions.
Meanwhile, PacWest Bancorp's (PACW.O) decision to explore strategic options sparked investor worries of a widening financial crisis.
Mounting risks to the U.S. economy have also supported strong investor demand into gold as they sought haven assets, ANZ said in a note.
Economic uncertainty and lower rates boost demand for the zero-yield asset.
The dollar index was set for a weekly drop, making gold more attractive for overseas buyers.
Investors are awaiting the U.S. Labor Department's non-farm payrolls (NFP) data due at 1230 GMT.
Spot silver fell 0.2% to $26.03 per ounce.
Platinum gained 0.8% to $1,047.27 and palladium edged 1.1% higher to $1,464.80. Both the metals were headed for a weekly decline.
(Reuters)
