2024-04-05T05:16:08+00:00
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/ Gold prices continued to decline from the highest level recorded before the release of the US jobs report, which is expected to support the Federal Reserve’s position towards postponing interest rate cuts for the time being.
Bullion fell for a second day by up to 1%, ahead of non-farm payrolls data that is expected to show that the US economy added more than 200,000 jobs for the fourth straight month in March.
The hawkish comments made by Minneapolis Federal Reserve Bank President Neel Kashkari on Thursday also negatively impacted gold, which benefits from lower interest rates because it does not generate a yield.
The precious metal is still on its way to achieving its third consecutive weekly gain after a series of record numbers over the past two weeks, as it recently touched its highest levels ever at $2,305.64 per ounce on Thursday. Silver prices also fell on Friday, although the cheaper metal is still up about 6% during the week and is approaching its highest levels in almost three years.
Gold prices have risen sharply since mid-February thanks to optimism that the Federal Reserve is close to a long-awaited change to its monetary policy.
The asset’s appeal as a safe haven is increasing in light of the increasing tensions in the Middle East and Ukraine and the continuing problems facing China’s economy. Also, Israel has intensified its preparations for possible retaliation against Tehran after Monday’s attack on the Iranian embassy compound in Syria, raising fears of a broader regional conflict.
The spot price of gold fell by 0.8% to $2,273.34 per ounce as of 10:39 am Singapore time, but increased 2% this week. Its continued advance has raised the 14-day Relative Strength Index to levels that some investors see as evidence that prices may need to decline.
The price of silver fell by 1.8% to $26.42 per ounce, while the prices of platinum and palladium also decreased. While the Bloomberg Dollar Spot Index rose by 0.1%, but was on the verge of recording a slight weekly loss.