PT Solid Gold Berjangka | Gold Slips on Increased Higher-For-Longer Rate Expectations
Gold slipped ahead of a key speech by Federal Reserve Chair Jerome Powell at the Jackson Hole symposium in Wyoming, where he’s expected to offer clues on the interest-rate outlook.
Treasury yields climbed amid mounting speculation that Powell will confirm expectations of a higher-for-longer rate environment when he address the gathering of global central bankers on Friday. Both higher rates and yields are typically negative for non-interest bearing bullion, though the metal remained on track to notch its first weekly gain in five after underwhelming US economic data earlier this week.
Meanwhile, a gauge of the US dollar — which rallied 0.4% on Thursday — has been orbiting its 200—day moving average for about two weeks, limiting the upside for gold which usually moves in the opposite direction to the greenback. Hawkish signaling from Powell would support a dollar-bullish perspective that’s already being reinforced by signs of tepid growth overseas.
Spot gold fell 0.2% to $1,913.67 an ounce at 4:40 p.m. in Singapore, and was up 1.3% for the week. The Bloomberg Dollar Spot Index rose 0.2%. Silver and palladium declined, while platinum gained.
Source: Bloomberg
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