Gold surges as the dollar falls on uncertainty surrounding Fed rate-hike. Stocksak

© Stocksak. FILE PHOTO – 99.99 percent pure, marked ingots are placed in a cart at Krastsvetmet, Russia’s non-ferrous metals facility. This is in Krasnoyarsk (Siberian city), March 10, 2022. REUTERS/Alexander Manzyuk

By Seher Dareen

(Stocksak – Gold prices gained more than 1% this week as the dollar fell amid reports of a possible debate between U.S. Federal Reserve officials regarding the pace of rate rises.

At 2:06 pm, it was 1.5% higher at $1652.21 an ounce ET (1806 GMT). U.S. settled at $1,656.3, up 1.2%

According to the WSJ report, Fed officials were preparing for another rise in interest rates of 0.75 percentage points in November. Some have also signaled their desire slow down increases.

“The Wall Street Journal article which mentions the pace of rate hikes is being given a lot of share of mind for (market)participants,” said Daniel Ghali, commodity strategist at TD Securities.

Mary Daly, President of San Francisco Federal Reserve Bank, said Friday that the central bank should not force the U.S. to enter an “unforced decline” by tightening. She also stated that the Fed is close to a point where it should slow down rate hikes.

Rising interest rates are a risk factor for gold, making it more expensive to hold bullion that doesn’t pay interest.

After rebounding from their lowest point since September, prices were up 0.6% for the week.

People bought gold after the price of gold fell to a low point, according to Michael Matousek (head trader at U.S. Global Investors.

The price of gold dropped 0.6% and the market gave up its earlier gains. [USD/] [US/]

Physically, demand for gold rose in India this week as consumers took advantage of a decline in domestic prices to buy into it before festivals. [GOL/AS]

Spot silver rose 2.7% to $19.16/ounce, platinum rose 1.9% to $931.00, while palladium fell 1.8% at $2,020.34.

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Stocksak Editorial

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