2024-01-19T05:12:00+00:00
A-
A
A+
/ Gold prices are heading for their biggest weekly decline in six weeks on Friday, driven by a stronger dollar and higher bond yields as US central bankers backtrack on expectations of early interest rate cuts amid signs of economic resilience.
Spot gold was little changed at $2,022.07 per ounce by 0404 GMT, but has fallen 1.3 percent so far this week.
U.S. gold futures rose 0.1 percent to $2,024.10.
The U.S. Dollar Index (.DXY) was down 0.2% on the day but up nearly 1% so far this week. A stronger dollar makes greenback-denominated gold more expensive for foreign currency holders.
The yield on the 10-year US Treasury note touched a five-week high of 4.1710%.
Atlanta Federal Reserve President Raphael Bostic said he is open to cutting interest rates sooner than expected, depending on how quickly inflation falls, but the baseline is to start rate cuts in the third quarter.
Markets were betting on 139 basis points of rate cuts this year, down from 150 basis points the previous week, according to LSEG’s interest rate probability app, IRPR.
The odds of a Fed rate cut in March have fallen to 54% from about 71% last week, according to IRPR.
Atlanta Fed President Raphael Bostic said he is open to cutting interest rates sooner than expected, depending on how quickly inflation falls, but the baseline is to start rate cuts in the third quarter.
Markets were betting on 139 basis points of rate cuts this year, down from 150 basis points the previous week, according to LSEG’s interest rate probability app, IRPR.
The odds of a Fed rate cut in March have fallen to 54% from about 71% last week, according to IRPR.
Spot silver fell 0.3 percent to $22.68 an ounce, platinum rose 0.2 percent to $909.06 and palladium gained 0.7 percent to $944.63.