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On Friday, both US gold futures’ and spot gold prices inched higher, extending Thursday’s blistering rally, as a weakening of US Dollar, concerns on global economic growth alongside frets over a withering increase in inflation indicators, had outweighed bets for a rate-hike.
Over the week, spot gold futures’ prices gained 0.61 per cent. Aside from a downside momentum in US Dollar Index (DXY), in the day’s decent rally in safe-haven yellow metal futures’ prices was galvanized by an indentation in US Treasury Yields with 10-year US Treasury bond notes rounding off the week at 1.46 per cent after breaching a 1.50-mark for the first time in more than three months earlier in the week.
On top of that, backing the gold futures’ prices safe-haven allure further, European alongside Asian stocks had tottered over frets of a plausible slowdown in economic growth over Q3, 2021, while a drag on China’s Evergrande alongside a faltering of Chinese factory activity to the lowest level since February 2020, had fanned up the flames further for global equity indices, eventually faring well for the safe-haven yellow metal.
Gold posts weekly gain as Dollar weakens
Citing statistics, in the day’s commodity market wind-down, spot gold gained 0.24 per cent to $1,760.65 an ounce, while US gold futures’ prices had edged 0.1 per cent higher to $1,758.40 per ounce.
Among other precious metals, silver contracts gained 1.5 per cent to $22.53 an ounce, adding roughly a 0.4 per cent over the week, while platinum and palladium contracts’ prices gained 1.1 per cent and 0.8 per cent respectively to $974.41 an ounce and $1,924.18 an ounce.
Meanwhile, addressing to a growing market concern over a steep rise in inflation with the US Fed’s benchmark inflation indicator, core PCE (Personal Consumption Expenditure) price index, rising to 3.6 per cent over past twelve months through August, nearly double of US Federal Reserve’s target of 2.0 per cent, a Saxo Bank analyst Ole Hansen said, “Anyone trying to convince market participants that inflation is not here, that’s a fool’s game”.