gold remains stable
Gold prices were flat on Friday after strong US economic data was seen as food for the Federal Reserve to keep interest rates high for longer. But caution should be exercised before inflation data and next week’s policy meeting place prices below bullion.
Gold prices rose 0.1% to $1,930.48 an ounce by 1255 GMT, after falling nearly 1% in the previous session, according to US data.
US gold futures were flat at $1,930.20.
US GDP numbers “Provoking speculation that although inflation is starting to look a bit better, But the Fed may have to hold interest rates higher for a long time,” said Michael Hewson, chief market analyst at CMC Markets.
Thursday’s data showed that the United States economy growing faster than expected But most economists expect a recession in the second half of the year. Although it was short-term and mild compared to the previous slowdown. This is because the labor market is particularly strong.
meanwhile The dollar index is also relatively stable. This makes dollar-priced bars a less attractive currency.
Investors are keeping an eye on the central bank’s two-day policy meeting next week. It is expected to raise interest rates by 25 basis points.
gold that pays no interest It tends to benefit when interest rates are low as it reduces the opportunity cost of holding gold bars.
“however The weakening of interest rate hikes (by the Fed) has been priced in gold for a long time, so any unexpected moves have had a significant impact on gold prices.” George Rowling, analyst at Kinesis Money, said in a note.
US personal consumption expenditure (PCE) data, due at 1:30 p.m. GMT, is also on the radar.
Spot silver was down 0.8% to $23.7063 an ounce, while platinum was down 0.9% to $1,009.41.
Palladium fell 0.2 percent to $1,673.97.