Mumbai, 24 May (Commoditiescontrol): Gold prices edged higher on Friday but were on track for their first weekly decline in three weeks, as the Federal Reserve's latest meeting minutes suggested a delay in monetary policy easing, reducing investor expectations for a U.S. interest rate cut.
Spot gold increased by 0.2% to $2,332.14 per ounce. Despite this rise, gold prices have fallen 3.4% this week after reaching a record high of $2,449.89 on Monday. U.S. gold futures dipped 0.2% to $2,333.70.
Minutes from the Fed’s April 30-May 1 meeting revealed that officials believe it will take longer than anticipated to be confident that inflation is moving towards the 2% target. This sentiment has affected market expectations for an imminent rate cut.
Economic activity has improved globally this month, particularly in the United States, parts of Asia, and Europe, giving central banks more leeway to delay cutting interest rates. Although gold is traditionally viewed as a hedge against inflation, higher interest rates increase the opportunity cost of holding non-yielding bullion.
An independent study revealed that the value of Peru's illegal gold exports surpasses the total legal gold sales of several other South American countries combined.
U.S. economic data released on Thursday, which indicated a delay in the anticipated first rate cut, is expected to impact Asian markets negatively.
In other market news, Johnson Matthey missed market expectations for full-year revenue and pretax profit, primarily due to lower prices for platinum group metals. Additionally, Russian metals giant Nornickel is planning a joint venture to construct a platinum group metals refinery in Bahrain, according to a Reuters source.
Among other precious metals, spot silver rose 0.5% to $30.25 per ounce, platinum gained 0.3% to $1,021.75, and palladium edged up 0.1% to $970.75.
(By Commoditiescontrol Bureau: 09820130172)
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