Shafaq News
Gold priceswere on track for a fourth consecutive weekly fall on Friday, as a resilientdollar and expectations of faster U.S. rate hikes to tame inflation keptbullion pressured near the key $4,000-per-ounce level.
Spot gold was steadyat $4,027.91 per ounce, as of 0752 GMT. U.S. gold futures for August deliveryedged 0.1% lower to $4,043.40.
"The rapidrepricing of the hawkish Fed created a strong bullish momentum in the U.S.dollar, which eventually led to this significant downward drift in goldprices," said Kelvin Wong, a senior market analyst at OANDA.
The U.S. dollarindex was headed for a second consecutive weekly gain, making gold moreexpensive for holders of other currencies.
Wong sees themulti-month correction in gold, since the record high reached in late January,extending towards $3,400 in the long term.
Gold priceshave fallen about 29% from the record high of $5,594.82 on January 29, asinflation fuelled by the U.S.-Iran war ramped up rate-hike bets.
Data onThursday showed that U.S. inflation increased further in May, breaking above4.0% for the first time in three years, as forecast by economists surveyedby Reuters.
Although goldis typically viewed as a hedge against inflation, it tends to lose its appealas a non-yielding asset in a high-interest-rate environment.
Traders expect three Fed rate hikes this year and are pricing in about a 64%chance of a September increase, according to the CME FedWatch Tool. FEDWATCH/
Among othermetals, spot silver edged 0.1% lower to $57.80 per ounce, platinum lost0.3% to $1,605.18, while palladium gained 1.4% to $1,200.75. All metals wereheaded for a weekly loss.
(Reuters)
Only the headline isedited by Shafaq News Agency.