Gold Heads for 2nd Weekly Loss Below $4,523 as Dollar Strength Fuels Fed Hike Bets
Updated
Updated · Reuters · May 22
Gold Heads for 2nd Weekly Loss Below $4,523 as Dollar Strength Fuels Fed Hike Bets
8 articles · Updated · Reuters · May 22
Spot gold fell 0.4% to $4,522.89 an ounce on Friday, leaving bullion down about 0.3% for the week and on track for a second straight weekly loss.
A dollar near a six-week high and firmer oil prices pressured gold by making it costlier for non-U.S. buyers and reinforcing expectations that U.S. rates will stay higher for longer.
CME FedWatch showed markets pricing a 60% chance of a Fed rate hike by December, while Richmond Fed President Thomas Barkin said persistent inflation could force policymakers to consider raising rates.
U.S.-Iran talks added to the backdrop: Marco Rubio cited some positive signs, but disputes over Iran's uranium stockpile and the Strait of Hormuz kept investors doubtful of a breakthrough and supported oil prices.
Elsewhere in precious metals, silver slipped 0.7% to $76.18 but was still headed for a 0.4% weekly gain, while platinum and palladium were both set for weekly losses.
As nations favor gold over U.S. Treasuries, is the dollar's reign as the ultimate safe-haven asset ending?
Can record gold buying by central banks overpower the Federal Reserve's high interest rates?