Gold Poised for Biggest Weekly Gain Since April - InvestingChannel

Gold Poised for Biggest Weekly Gain Since April

Gold prices were set on Friday for their biggest weekly gain in nearly two months, as a softer U.S. dollar and hopes for a pause in the Federal Reserve’s tightening campaign bolstered bullion’s appeal.

Spot gold was 0.1% higher at $1,980.49 U.S. per ounce. U.S. gold futures steadied at $1,997.50.

Bullion has gained 1.7% so far this week, heading for its best week since the week ended April 7.

Current gold market sentiment remains constructive, and prices could move a little higher from here as the Fed is expected to stay on hold in June, said Edward Meir, a metals analyst at Marex.

Philadelphia Fed President Patrick Harker said on Thursday U.S. central bankers should not raise interest rates at their next meeting, even though high inflation is coming down at a “disappointingly slow” pace.

Markets now see a 71.5% chance of rates remaining unchanged in June. Gold, which does not yield any interest of its own, loses appeal when interest rates rise.

Meanwhile, the U.S. Senate passed bipartisan legislation backed by President Joe Biden that lifts the government’s $31.4 trillion debt ceiling, averting what would have been a historic, first-ever default.

On the data front, investors will keep a tab on the U.S. Labor Department’s non-farm payrolls report due at8:30 a.m. EDT.

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