Last Update: May 20, 2023, 01:45 AM IST
Gold was down almost 1.5% for its worst week since February, following a series of strong economic data.
Spot gold was up 1.2% at $1,981.79 an ounce as of 12:30 p.m. ET (1830 GMT). US gold futures closed up 1.1% at $1,981.60
Gold climbed 1% on Friday, recouping some losses earlier this week, on renewed concerns about the stability of the banking sector, while traders braced for another interest rate cut following comments from the US Federal Reserve chairman. Reduced stakes for growth.
Spot gold was up 1.2% at $1,981.79 an ounce as of 12:30 p.m. ET (1830 GMT). US gold futures rose 1.1% to $1,981.60.
“Gold is higher on Yellen than on a cautious Powell,” said Tai Wong, an independent metals trader based in New York, who still suggests June will be a ‘skip’ meeting unless data in the next few weeks is particularly troubling. Don’t be.”
Shares of US regional lenders declined after CNN reported that US Treasury Secretary Janet Yellen told bank CEOs that more mergers may be necessary following a series of bank failures.
“Nothing clearly attracts the market to an airsick bag more than bank shakes ahead of the weekend,” Tai Wong said.
Fed Chair Jerome Powell said it was still unclear whether further hikes in US interest rates would be needed, as central bank officials balance uncertainty about the effect of previous hikes on borrowing costs.
Markets now see an 82% chance of the Fed holding rates until July.
Gold was down almost 1.5% for its worst week since February, following a series of strong economic data.
“This is the week gold really got crushed because there’s been a steady flow of that debt ceiling optimism and, in addition, there’s been some bullish pushback from the Fed,” said Edward Moya, senior market analyst at OANDA.
Meanwhile, US House Republicans and the Democratic administration of President Joe Biden stalled talks on raising the debt ceiling.
Silver rose 1.7% to $23.90 an ounce, platinum rose 1.4% to $1,064.09 and palladium rose 3.8% to $1,508.57.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – reuters,
