Gold set for weekly gain on safe-haven inflows, softer dollar
Gold prices on Friday were set for their first weekly gain in two, supported by a softer dollar and safe-haven buying, as investors awaited further clues on when the U.S. Federal Reserve is likely to begin cutting its interest rates.
prices on Friday were set for their first weekly gain in two, supported by a softer and buying, as awaited further clues on when the U.S. is likely to begin cutting its interest rates.FUNDAMENTALS
* Spot gold was up 0.1% at $2,026.5 per ounce, as of 0100 GMT, and has gained 0.7% for the week so far. U.S. gold futures edged 0.2% higher to $2,035.5 per ounce.
* Turmoil in the Middle East also lifted bullion's safe-haven appeal. Yemen's Iran-aligned Houthis claimed responsibility for an attack on a UK-owned cargo ship, and they targeted Israel's port and resort city of Eilat with ballistic missiles and drones.
* The dollar index was down 0.3% for the week so far, making greenback-priced bullion more affordable to overseas buyers.
* With inflation easing and the labour market normalising, the risks to the economy have become "two-sided," but it's not yet time to reduce interest rates, U.S. Federal Reserve Governor Lisa Cook said.
* Another Fed official sees 'no rush' to interest rate cuts to see if a recent uptick in inflation signals stalling progress toward price stability or is just a bump in the road.
* Minutes of the Fed's latest policy meeting released on Wednesday showed that a majority of the central bank's policymakers are concerned about the risks of cutting interest rates too soon.
* Markets are currently pricing in a 64% chance of a cut in June, according to the CME Fed Watch Tool. Lower interest rates boost the appeal of holding non-yielding bullion.
* Spot platinum was up 0.1% at $903.25 per ounce, palladium rose 0.3% at $970.48, while silver was up 0.3% at $22.80 per ounce.