February 4, 2023

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Gold hits 1-month high as dollar weakens, set for weekly gain

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Gold prices scaled a one-month peak on

Friday, riding on a weaker U.S. dollar that has also put bullion

on track for a third straight weekly gain.

Spot gold was up 0.2% at $1,871.28 per ounce, as of

0214 GMT, its highest level since May 9. Gold prices have risen

about 1% so far this week.

U.S. gold futures also climbed 0.2% to $1,874.50.

The dollar edged lower, making greenback-priced

bullion more attractive for overseas buyers.

“We think prices have seen an important low around $1,828

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this week, and with bullish momentum having returned, a move

towards $1,900 seems feasible,” City Index senior market analyst

Matt Simpson said.

Gold prices rose more than 1% on Thursday, supported by a

dip in the dollar and data showing U.S. private payrolls rose

less than expected last month.

Signs of an economic crisis can be supportive for gold

demand, as investors consider it a safe-haven asset.

“We also note that large speculators and managed funds

increased their net-long exposure to gold last week, for the

first week in six, which suggests there’s support at lower

levels,” Simpson added.

Meanwhile, the U.S. Federal Reserve is likely to continue

tightening monetary policy beyond the half-percentage point

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interest rate hikes expected at each of its next two meetings,

two policymakers signaled on Thursday, with the only question

being how much.

Higher short-term U.S. interest rates increase the

opportunity cost of holding gold, which bears no interest.

SPDR Gold Trust , the world’s largest gold-backed

exchange-traded fund, said its holdings dipped 0.1% to 1,066.04

tonnes on…


2022-06-02 22:36:47

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