Gold flat as investors assess US data, Fed rate signals
Timilehin Adejumobi
1 min read
Gold held steady in early Asian trading on Friday, supported by a relatively weaker dollar as investors digested a host of U.S. economic data and the Federal Reserve’s “hawkish pause” on interest rate hikes.
FUNDAMENTALS
Spot gold was flat at $1,959.03 per ounce by 0015 GMT. U.S. gold futures too were little changed at $1,971.50.
Bullion fell to a three-month low on Thursday, but erased the losses to end higher after U.S. economic data offered some respite from a ‘hawkish pause’ on interest rates by the Federal Reserve.
While U.S. jobless claims were higher than expected, a separate data showed industrial output dropped 0.2% in May, missing expectations for a 0.1% increase.
The dollar index slid to a one-month low in the previous session, while 10-year Treasury yields slipped, supporting demand for zero-interest-bearing bullion.
The Fed on Wednesday left its policy rate unchanged, but signalled in new projections that borrowing costs might still need to rise by as much as half a percentage point by year end.
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