Gold eyes second weekly gain as focus shifts to growth fears

By Arijit Bose (Reuters) - Gold rose on Friday en route to a second weekly gain as the dollar was subdued by weak U.S. economic data and hopes of a breakthrough in the U.S.-China trade dispute, with a darkening global economic outlook bolstering interest in bullion. Spot gold was up 0.5 percent at $1,329.42 per ounce by 1603 GMT, or higher by about 0.6 percent thus far this week

Reuters February 23, 2019 00:06:08 IST
Gold eyes second weekly gain as focus shifts to growth fears

Gold eyes second weekly gain as focus shifts to growth fears

By Arijit Bose

(Reuters) - Gold rose on Friday en route to a second weekly gain as the dollar was subdued by weak U.S. economic data and hopes of a breakthrough in the U.S.-China trade dispute, with a darkening global economic outlook bolstering interest in bullion.

Spot gold was up 0.5 percent at $1,329.42 per ounce by 1603 GMT, or higher by about 0.6 percent thus far this week.

U.S. gold futures were down 0.3 percent at $1,331.70 per ounce.

The metal had fallen about 1 percent on Thursday following the release of minutes from the U.S. Federal Reserve's last policy meeting, which painted a less dovish picture than expected.

"Gold should be doing a little better, because there are possibilities of a trade deal, which would mean the dollar could weaken; the U.S. economy is also slowing quite markedly, that should keep interest rates fairly dormant," INTL FCStone analyst Edward Meir said.

Higher rates reduce investor interest in non-yielding bullion.

The dollar index, though little changed versus six other major currencies on Friday, was set for its biggest weekly fall in a month, bolstering the appeal of gold.

The U.S. currency, which has been a refuge for investors during the U.S.-China trade dispute, has come under pressure on signs of a breakthrough in talks. [USD/]

Also helping the case for gold, new orders for U.S.-made capital goods unexpectedly fell in December, reviving some market expectations that the Fed would halt its 2019 rate-increase cycle.

The news added to concerns about a slowdown in Europe and China, which analysts said have prompted increasing interest in gold, considered a safe haven in times of economic and political uncertainty.

However, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, dropped 0.6 percent to 789.51 tonnes on Thursday.

Natixis analyst Bernard Dahdah said the slight pullback did not signal a shift by gold investors since the levels were still close to highs recorded at the start of 2019.

Elsewhere, palladium gained 1.5 percent to $1,480.17 per ounce, having topped the psychologically significant $1,500 level for the first time on Feb. 20.

The autocatalyst metal was on track for a third straight week of gains, up about 4.2 percent.

Platinum rose 2.2 percent to $837, and was set for its best week since early November 2018. Silver was up 0.7 percent to $15.93, poised to snap two weekly losses.

(Reporting by Arijit Bose; Editing by Steve Orlofsky)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

Pulitzer Prize-winning photojournalist Danish Siddiqui killed in Afghanistan: Politicans, journalists pay tributes
India

Pulitzer Prize-winning photojournalist Danish Siddiqui killed in Afghanistan: Politicans, journalists pay tributes

The Pulitzer prize winner, who was in Kandahar covering operations against Taliban, was killed when he was riding along with the Afghan Special Forces

Indian photojournalist Danish Siddiqui killed during assignment in Afghanistan's Kandahar province
India

Indian photojournalist Danish Siddiqui killed during assignment in Afghanistan's Kandahar province

Siddiqui had also covered the 2020 Delhi riots, COVID-19 pandemic, Nepal earthquake in 2015 and the protests in Hong Kong

Danish Siddiqui's passing is a reminder of the high price one pays for showing the truth
India

Danish Siddiqui's passing is a reminder of the high price one pays for showing the truth

Danish's photographs were not just documentation, but the work of someone who went down to eye-level, as they say in photographic parlance.