Mumbai, 17 May (Commoditiescontrol): Gold prices remained steady on Friday, poised for a second consecutive weekly gain, as recent U.S. economic data led traders to anticipate an interest rate cut from the Federal Reserve later this year. Spot gold stood firm at $2,377.09 per ounce, with bullion prices rising 0.7% over the week. Meanwhile, U.S. gold futures dipped 0.2% to $2,381.20.
The dollar index decreased by 0.7% for the week, making gold more affordable for holders of other currencies. This decline in the dollar comes amid positive signs from the U.S. labor market. The number of Americans filing new claims for jobless benefits fell last week, reversing nearly half of the increase seen at the start of the month. This suggests that labor market conditions remain relatively tight, despite a slowdown in job growth.
This week's economic data provided encouraging signals for the Federal Reserve, though policymakers have yet to openly discuss the timing of potential rate cuts that investors expect to begin this year. Lower interest rates tend to reduce the opportunity cost of holding non-yielding assets like gold, thereby boosting its appeal.
Atlanta Fed President Raphael Bostic noted that the April inflation report might offer important insights into inflation trends, particularly with a slower rise in shelter costs. However, the International Monetary Fund (IMF) has cautioned that recent U.S. inflation data remains higher than desired, urging the Federal Reserve to remain vigilant and data-dependent.
In corporate news, Anglo American has suspended global hiring as it works on simplifying operations and enhancing value to counter a $43 billion takeover bid by Australia's BHP Group.
In other precious metals, spot silver remained flat at $29.61 per ounce, platinum rose 0.4% to $1,061.80, and palladium declined 0.5% to $989.44.
Asian markets are set to end the week on a positive note, with no clear indicators suggesting a reversal of the recent upswing unless investors decide to take profits before the weekend.
(By Commoditiescontrol Bureau: 09820130172)
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