Gold inches higher, but faces worst month in seven
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GOLD prices edged higher on Friday (Apr 29) as lower US Treasury yields outweighed pressure from an elevated dollar, but bullion was still headed for its biggest monthly drop since September on fears of aggressive interest rate hikes by the Federal Reserve.
Spot gold was up 0.1 per cent at US$1,897.01 per ounce, as of 12.54 am GMT. US gold futures rose 0.4 per cent to US$1,898.10.
Benchmark 10-year US Treasury yields eased, increasing the appeal of holding non-yielding gold.
Gold prices were headed for a second straight weekly loss and their biggest monthly percentage drop since September 2021 of about 2.1 per cent.
The dollar steadied near a 20-year high it hit against rivals in the previous session. A stronger dollar makes greenback-priced gold less attractive for other currency holders.
On Thursday, the dollar's strength played a part in pushing gold prices to their lowest in more than 2 months before bullion reversed its course.
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Fed officials have aligned around plans to accelerate the pace of interest rate hikes this year but remain split over what could be the make-or-break decision of where to stop to avoid dragging the economy into recession.
Higher short-term US interest rates tend to increase the opportunity cost of holding non-yielding bullion.
Spot silver gained 0.2 per cent to US$23.17 per ounce, platinum dipped 0.1 per cent to US$918.67, and palladium rose 0.6 per cent to US$2,245.34. All were set for monthly falls. REUTERS
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