[ad_1]
Gold prices slipped Friday but may break a four-week losing streak while traders awaited remarks from Federal Reserve Jerome Powell due around 10 a.m. Eastern Time.
Price action
-
Gold futures for December delivery
GC00,
-0.28% GCZ23,
-0.28%
fell by $1, or nearly 0.1%, to settle at $1,947,10 per ounce on Comex, marking the first loss in five sessions. -
Silver futures for September delivery
SI00,
+0.31% SIU23,
+0.31%
declined by 16 cents, or 0.7%, to $24.23 per ounce after tacking on 4% Wednesday. -
October platinum
PL00,
+1.04% PLV23,
+1.04%
rose by $9, or 1%, to $952 per ounce, while palladium for September delivery
PA00,
-1.37% PAU23,
-1.37%
declined by $4.10, or 0.3%, to $1,240 per ounce. -
Copper for September delivery
HGU23,
+0.04%
rose by 3 cents, or 0.7%, to $3.80 per pound.
Market drivers
The main event Friday is Federal Reserve Chairman Jerome Powell’s keynote address at the Kansas City Fed’s annual economic symposium.
The big risk for markets, including gold, is that Powell might signal that the Fed is raising its estimates for the neutral rate of interest which measures the theoretical level at which rates neither stimulate nor restrict an economy.
See: Why this abstract concept could rattle stocks when Powell speaks at Jackson Hole
“The emphasis will be on what Powell says about the path of interest rates. With US Treasury yields trading near their highest levels of this cycle, his commentary can either add fuel to this rally or trigger a correction, which will have ripple effects on other assets such as the USD, equities, and gold,” said Marios Hadjikyriacos, senior investment analyst at XM, in emailed commentary.
Rising global bond yields and a stronger U.S. dollar have stoked a selloff in gold over the past month. The yield on the 10-year Treasury note
BX:TMUBMUSD10Y
was little-changed Friday at 4.238%. Yields reached their highest levels since 2007 earlier this week when the 10-year closed at 4.339%, according to FactSet data.
A stronger dollar may have contributed to gold’s weakness early Friday. The ICE U.S. Dollar Index
DXY,
a gauge of the buck’s strength against a basket of rivals, was trading up 0.1% at 104.05 on Friday, its highest level since early June.
[ad_2]
Source link
