Gold prices rose slightly on Friday and were headed for their best week in 15, as the dollar weakened following a decline in US Treasury yields, while investors awaited US non-farm payroll data for clues about the health of the world's top economy.
Spot gold was up 0.1 per cent at $1,239.24 per ounce, as of 0125 GMT, having hit a near five-month peak at $1,244.32 per ounce in the previous session. US gold futures were up 0.1 per cent at $1,244.6 per ounce.
The dollar index inched lower, weighed down by worries about lower US long-term Treasury yields and expectations of a fewer rate hikes by the US central bank.
Atlanta Federal Reserve bank president Raphael Bostic had on Thursday said he felt the Fed should continue raising rates towards a “neutral” level, noting that despite recent market volatility and increasing uncertainty, he did not see “any indications of a material weakening in the macroeconomic data at the moment’’.
The US economy is “performing very well overall,” Federal Reserve Chairman Jerome Powell said, capping a week of widespread market nervousness with a reminder that the US economy continues to expand.
Asian share markets tried to find their footing on Friday as speculation the Federal Reserve might be “one-and-done” with US rate hikes helped salve some wounds after a punishing week.
Gold-backed exchange-traded funds (ETFs) registered inflows in all the world's major regions in November, as volatile stock markets fuelled flight-to-safety buying, the World Gold Council had said on Thursday.
Markets face a test from US payrolls data later in the session amid speculation the economy was heading for a tough patch after years of solid growth. US oil prices stabilised on Friday, buoyed by a fall in US crude oil inventories, but the sentiment remained weak as producer group OPEC postponed a final decision on output cuts, awaiting support from non-OPEC heavyweight Russia.
Most industrial metals prices fell on Thursday and copper hit a three-week low after the arrest of a top Chinese executive in Canada dampened hopes for a resolution to the US-China trade conflict. The US trade deficit jumped to a 10-year high in October as soybean exports dropped further and imports of consumer goods rose to a record high.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.