Gold prices struggle for momentum as dollar firms
GOLD prices were little changed on Friday (Mar 24) after two sessions of sharp gains, as a slightly stronger dollar countered hopes of a potential pause in the Federal Reserve’s rate-hike cycle.
Spot gold was flat at US$1,993.73 per ounce, as of 0104 GMT. US gold futures were also unchanged at US$1,996.60.
The dollar index edged up 0.1 per cent, making bullion more expensive for buyers holding other currencies.
Bullion has gained nearly 0.3 per cent so far in the week, after the Fed hinted it might pause further increases in borrowing costs after the recent collapse of two US banks.
Gold is traditionally considered a hedge against inflation, and a low interest-rate environment makes non-yielding bullion a more attractive bet.
The number of Americans filing new claims for unemployment benefits edged down last week.
The Bank of England raised interest rates for the 11th time in a row on Thursday, but said a surprise resurgence in inflation would probably fade fast, prompting speculation it had ended its run of hikes.
US Treasury Secretary Janet Yellen sought to reassure jittery investors that American bank deposits were safe and promised policymakers had more firepower to battle any crisis.
Spot silver eased 0.1 per cent to US$23.11 per ounce, platinum was little changed at US$984.13 and palladium was 0.1 per cent lower at US$1,429.19. REUTERS
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