Gold prices hit 1-month high as dollar weakens, set for weekly gain

GOLD prices scaled a 1-month peak on Friday (Jun 3), supported by a lower US dollar, which also put bullion on track for a third straight weekly gain.

Spot gold was up 0.2 per cent at US$1,871.69 per ounce, as of 12.48 am GMT, its highest since May 9. Gold prices have risen about 1 per cent this week.

US gold futures were up 0.3 per cent to US$1,875.90.

Gold prices rose over 1 per cent on Thursday supported by a dip in the dollar and data showing US private payrolls rose less than expected last month.

Signs of an economic crisis can be supportive for gold demand, as investors consider it as a safe-haven asset.

The dollar edged lower, making greenback-priced bullion more attractive for overseas buyers.

The Federal Reserve is likely to continue tightening monetary policy beyond the half percentage point interest rate hikes expected at each of its next 2 meetings, 2 policymakers signalled on Thursday, with the only question being how much.

Higher short-term US interest rates increase the opportunity cost of holding gold, which bears no interest.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.1 per cent to 1,066.04 tonnes on Thursday from 1,067.20 tonnes on Wednesday.

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Spot silver rose 0.5 per cent to US$22.40 per ounce, and has gained 1.4 per cent this week.

Platinum firmed 0.1 per cent to US$1,023.33, and is on course for a weekly uptick of about 7.4 per cent, its most since May 2021. Palladium climbed 0.6 per cent to US$2,066.38. REUTERS