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Thursday, March 23, 2023

Gold Prices Set For Second Weekly Slump as Dollar Gains Momentum

Gold Prices Set For Second Weekly Slump as Dollar Gains Momentum© Reuters.

Investing.com – Gold prices traded lower as the dollar headed for its biggest weekly gain in more than a year but losses in the precious metal were limited as yields retreated from four-year highs.

for February delivery on the Comex division of the New York Mercantile Exchange fell by $2.30, or 0.17%, to $1,317.10 a troy ounce.

Gold prices were set for their second weekly drop in a row, pressured by a sharp recovery in the dollar and expectations that global central banks were poised to initiate a shift away from ultra-loose monetary policy measures.

The Bank of England stood pat on interest rates Thursday but signalled that rate hikes could be needed earlier than expected as the rapid pace of inflation continued. Offsetting the prospect of tighter monetary policy, however, was the ongoing rout in global stock markets, triggering safe-haven demand, as more than $6 trillion in stock market capitalization was lost so far this week.

Gold is sensitive to moves higher in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.

In other precious metal trade, fell 0.92% to $16.20 a troy ounce, while 1.61% to $962.60.

fell 1.65% to $3.03, while fell 4.23% to $2.58.

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Source: Investing.com

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