Tuesday, May 30, 2023

Gold down, strong US data cuts Fed easy bets

Gold extended its losses on Thursday after strong economic readings from the United States eased bets on whether to hike interest rates by the Federal Reserve, and as it was also pressured by optimism that it would can be achieved. debt ceiling.

* At 1740 GMT, spot gold was down 1.3% at $1,956.79 an ounce, its lowest since April 3 at $1,951.73. In the United States, gold futures also declined by 1.3% to close at $1,959.80.

* The number of new US jobless claims was lower than expected last week, accompanied by a smaller drop in the Philadelphia Fed business index.

Along with a relatively vibrant job market, some optimism about debt ceiling talks has also strengthened the dollar and supported stocks, said David Mager, director of metals trading at High Ridge Futures, adding some to safe-haven demand. Injured to an extent.

* “We are not as positive on the gold market now as we have been for several months,” he said.

* Gold under pressure, Wall Street edged up as the dollar and 10-year Treasury yields hit multi-week highs supported by economic data.

* Markets now hover around a 20% chance of another rate hike in June, compared with 20% bets for a cut a month ago.

* Bullion, which does not pay interest, suffers when other assets like bonds yield higher rates of return.

* Dallas Fed President Lori Logan said inflation has not yet eased fast enough to allow the Fed to hold off on a rate hike in June, while Fed Governor Philip Jefferson assured that after the sharpest increases so far, It is too early to assess the full impact.

* Both are part of the Fed panel that sets monetary policy.

* Among other precious metals, silver fell 1.1% to $23.47 an ounce; Platinum fell 1.9% to $1,048.27; And palladium fell 1.9% to $1,458.87.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com/
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