Home/Commodities/Newsfeed

Gold Higher on Safe Haven Flows

Share Print 0

Gold was steady and set for a second weekly gain on Friday, bolstered by the U.S. Federal Reserve’s caution on an interest rate rise and worries over Greece, but a recovering dollar capped the gains.

Spot gold was up 0.1 percent at $1,202.47 an ounce by 1331 GMT, after a 1.3 percent rise on Thursday, its biggest daily increase since mid-May. Prices are up 1.8 percent this week so far, the biggest weekly increase in over a month.

“The boost that gold got from a more dovish Fed this week slightly improves the technical picture, leaving $1,225 as the next biggest resistance level,” ActivTrades chief analyst Carlo Alberto de Casa said.

Gold hit a three-week high on Thursday on a softer dollar after Fed policymakers said a rate increase would be appropriate only after further improvement in the labour market and greater confidence that inflation would rise.

“The rate move, a stronger dollar and the re-pricing of the U.S. yield curve will limit any upside,” Danske Bank senior analyst Jens Pedersen said.

Non-interest-paying gold has benefited from a record-low rate environment following the 2007-2009 credit crisis. Higher rates would increase the opportunity cost of holding the metal.

via Reuters

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza

@alfonso_forex

Back to Top