PRECIOUS-Gold poised for second week of decline on hawkish Powell remarks
Shafaq News/ Gold prices were track for a second consecutive week of declines, weighed by a stronger U.S. dollar and Treasury yields after hawkish remarks from Federal Reserve Chair Jerome Powell.
Spot gold XAU= was little changed at $1,959.74 per ounce by 0351 GMT on Friday, after hitting its lowest since Oct. 18 on Thursday. U.S. gold futures GCcv1 fell 0.3% to $1,964.50.
Gold was also set for its worst week in more than a month, down 1.6% so far this week.
Denting market expectations of a peak in U.S. rates, Fed officials including Powell said on Thursday they are still that interest rates are high enough to finish the battle with inflation.
"Gold has been consolidating below $2,000 since the beginning of November, after getting ahead of itself... However, I remain bullish for year-end as long as it stays above $1,900," said Hugo Pascal, a precious metals trader at InProved.
Following Powell's comments, benchmark 10-year U.S. Treasury yield US10YT=RR rose from more than one-month lows, making non-yielding bullion less attractive for investors. US/
Traders pushed out bets on the Fed's likely first interest-rate cut to June of next year from May earlier. Higher rates raise the opportunity cost of holding gold, which yields no interest.
Meanwhile, the dollar index .DXY was heading for its best week in two months, making gold more expensive for other currency holders. USD/
Data on Thursday showed the new claims for unemployment benefits edged down last week.
Palladium XPD= slipped 1.3% to $979.43 per ounce to its lowest levels since 2018 and was set for its worst week in 11 months.
Platinum XPT=, meanwhile, eased 0.2% to $857.61 and was heading for its worst weekly performance since the week ended June 18, 2021. Silver XAG= rose 0.4% to $22.72.
(REUTERS)
