PT Solid Gold Berjangka | Gold Set for Biggest Weekly Loss Since February on Rate Outlook

01:13 29 September in Commodity, Gold, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP

Gold headed for its biggest weekly decline in eight months, with the higher-for-longer interest rate environment taking its toll on the precious metal.

Bullion was steady on Friday after declining for the previous four sessions to below the $1,870-an-ounce mark that analysts had flagged as an important technical level. Commentary by the Federal Reserve indicating it will keep policy tight for a long period has pushed inflation-adjusted US bond yields to multiyear highs. Both higher yields and rates make non-interest bearing bullion less attractive.

Exchange-traded funds backed by the metal have accelerated sales of bullion. A particularly large outflow came from Blackrock’s iShares Gold Trust, which has shed 13 tons of gold this week, according to data compiled by Bloomberg.

Spot gold was up 0.1% to $1,866.90 an ounce at 8:31 a.m. Singapore time, on track for a weekly drop of 3%. The Bloomberg Dollar Spot Index was flat. Silver, platinum and palladium edged higher.

Source : Bloomberg