- Home
- >
- Commodities Daily Forecasts
- >
- Gold with a decline in the Asian session after strong US dollar and expectations for interest rate hikes in the US
Gold with a decline in the Asian session after strong US dollar and expectations for interest rate hikes in the US
Rating:
Loading...Gold advanced for a third session running on Friday and was on track to end a four-week losing streak, supported by a softer dollar and hopes that the U.S. central bank will not rush to raise interest rates.
But the metal is still headed for its biggest monthly loss since September, having fallen nearly 6 percent in February.
Spot gold was up 0.2 percent at $1,210.60 an ounce by 0042 GMT, having touched a one-week high of $1,220 on Thursday. Bullion has gained 0.8 percent for the week.
Expectations that the Federal Reserve would raise interest rates this year had pulled gold prices lower for most of this month. It regained some lost ground this week after Fed Chair Janet Yellen's congressional testimony suggested the U.S. central bank would be flexible in the rate hike timing.
U.S. gold for April delivery was steady at $1,210.70 an ounce.
U.S. consumer prices fell over the past year for the first time since 2009 as gasoline prices continued to tumble, which could allow a cautious Fed more room to hold off on raising interest rates.
But San Francisco Fed President John Williams and St. Louis Fed chief James Bullard both suggested that the U.S. central bank might end its near zero interest rate policy sooner than some traders expect.
China's gold imports from Hong Kong rebounded in January from a three-month low in December, reflecting increased demand ahead of the Lunar New Year.
Varchev Finance
Varchev Traders If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
