Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Dollar uptick stalls gold's Fed-inspired rally

07/30/2021 | 10:39am EDT
Gold bars are pictured on display at Korea Gold Exchange in Seoul

(Reuters) - Gold prices edged off a two-week high on Friday, with a firmer dollar stalling the precious metal's rally after U.S. Federal Reserve Chair Jerome Powell reassured investors the central bank would remain accommodative for the time being.

Spot gold fell 0.2% to $1,824.43 per ounce by 10:05 am EDT. U.S. gold futures eased 0.4% to $1,829.30.

But gold was still en route to a weekly gain, having hit a two-week peak on Thursday after Powell said the U.S. job market still had some ground to cover before the Fed would pull back support.

"Gold looks strong at these levels and the fact that we're so far above $1,800 and the Fed didn't really say anything that is going to change course on asset purchases or any type of rate hike adds strength to the market," said Bob Haberkorn, senior market strategist at RJO Futures.

Haberkorn, however, said data showing a rise in core inflation at a slightly slower-than-expected pace last month, coupled with a stronger dollar, was currently weighing on the precious metal.

Gold is traditionally seen as a hedge against inflation.

The dollar index, which had slipped to a one-month low earlier, was up 0.1%, reducing gold's appeal for other currency holders. [USD/]

"The bar remains razor thin for a pullback in gold, as the precious metal's relatively weak price action, despite real yields hitting new all-time lows, continues to signal there is a lack of impetus from speculators to buy the yellow metal," TD Securities wrote in a note.

Gold competes with government bond yields as a safe-haven asset during uncertain times and lower yields decrease the opportunity cost of holding gold, which pays no interest.

Elsewhere, silver was steady at $25.52 per ounce and was on track for its first weekly gain in four.

Palladium fell 0.3% to $2,637.15, while platinum slipped 1.1% to $1,048.50.

(Reporting by Nakul Iyer in Bengaluru; Editing by Anil D'Silva)

By Nakul Iyer


ę Reuters 2021
Latest news "Economy & Forex"
04:42pIMF's Georgieva accuses former World Bank president Kim's office of manipulation
RE
04:40pNew York Fed researchers develop climate stress test for banks
RE
04:38pDollar climbs as Evergrande uncertainty percolates
RE
04:38pUnited Airlines fined $1.9 million for U.S. tarmac delays
RE
04:35pHuawei CFO strikes agreement with U.S. over fraud charges, allowing her to leave Canada
RE
04:34pEXCLUSIVE : Oil producer Hilcorp eyes purchase of shut Louisiana refinery -sources
RE
04:32pKey events in Huawei CFO Meng Wanzhou's extradition case
RE
04:27pTwo Fed policymakers say bar for taper met, nod to next debates
RE
04:25pMaterials Tick Down As Traders Digest Fed's Taper Plans -- Materials Roundup
DJ
04:23pEnergy Up As Oil Futures Test Recent Highs -- Energy Roundup
DJ
Latest news "Economy & Forex"