2024-01-05T04:43:18+00:00
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/ Gold is heading to record its first weekly decline in a month, today, Friday, as the dollar received support from the decline in expectations of an early cut in interest rates in the United States, while investors await a major employment report later today, seeking more indicators about interest.
The dollar index is on track to record its best weekly performance since July 2023, making the yellow metal more expensive for holders of other currencies.
Indicating the continued strength of the US labor market, data yesterday, Thursday, showed that the number of people who filed new applications for unemployment benefits last week declined more than expected, and that employers in the private sector hired a larger number of workers than expected in December.
The minutes of the Federal Reserve (US central bank) meeting held on December 12 and 13 showed a growing feeling among policymakers that inflation is under control, but they indicated a high degree of uncertainty about expectations for interest cuts.
Low interest rates reduce the opportunity cost of holding non-yielding gold.
The CME Group’s Fed Watch tool showed a decline in traders’ bets on lowering interest rates, as markets now expect a 65 percent chance of a rate cut by March, compared to 90 percent a week ago.
Investors are awaiting the US non-farm payrolls report, which will be released later today, in search of more indicators.
By 0156 GMT, gold in instant transactions rose 0.1 percent to $2054.10 per ounce. It has fallen by approximately 0.8 percent since the beginning of the week after three consecutive weekly gains.
US gold futures increased 0.2 percent to $2,053.00 per ounce.
As for other precious metals, silver rose in spot transactions by 0.6 percent to $23.13 per ounce. Platinum fell 0.3 percent to $953.61.
Palladium rose 0.7 percent to $1,044.23 an ounce after an eight-session decline.