Gold prices set for weekly gain on smaller US rate-hike bets
Add BT as a preferred source
GOLD prices edged higher on Friday (Jan 13) and were on track for a fourth weekly gain, supported by a weaker dollar and expectations of slower interest rate hikes by the US Federal Reserve.
Spot gold was up 0.1 per cent at US$1,897.92 per ounce, as of 0045 GMT. Prices gained 1.7 per cent so far this week.
US gold futures rose 0.2 per cent to US$1,901.80.
The dollar index was on track for a weekly loss of 1.6 per cent. A weaker greenback makes bullion more attractive to overseas buyers.
US consumer prices fell for the first time in more than 2-1/2 years in December, offering hope that inflation was now on a sustained downward trend.
Atlanta Federal Reserve Bank president Raphael Bostic said on Thursday that the inflation data may allow the Fed to scale back to quarter-point rate hikes at its upcoming meeting.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
Gold is seen as an inflation hedge, but higher interest rates increase the opportunity cost of holding the asset.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.03 per cent to 912.14 tonnes on Thursday.
Spot silver edged 0.2 per cent higher to US$23.82, platinum gained 0.4 per cent to US$1,071.74 and palladium slipped 0.6 per cent to US$1,782.13. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
