Mumbai, 14 Jun (Commoditiescontrol): Gold prices held steady on Friday, poised for their first weekly gain in four weeks despite a sharp decline of over 1% in the previous session. This stability comes after the U.S. Federal Reserve signaled only one interest rate cut this year, dashing hopes of multiple cuts.
Spot gold remained unchanged at $2,303.43 per ounce, while U.S. gold futures also held steady at $2,318.50. Gold has gained 0.5% so far this week, marking a potential end to its three-week losing streak.
On Wednesday, Fed policymakers extended the timeline for potential rate cuts to as late as December, indicating just one reduction in interest rates for the year. This announcement tempered market expectations of two rate cuts and came despite progress in controlling inflation. Lower interest rates typically reduce the opportunity cost of holding non-yielding bullion, making gold a more attractive investment.
In economic data, U.S. producer prices unexpectedly fell in May, driven by lower energy costs, suggesting that inflation pressures might be easing after a surge in the first quarter.
In the mining sector, Gold Fields reduced its annual production forecast due to adverse weather conditions affecting the ramp-up at its new Salares Norte mine in Chile.
Among other precious metals, spot silver fell 0.5% to $28.985 per ounce. Platinum rose 0.7% to $953.43 per ounce, and palladium increased by 0.8% to $889.84 per ounce.
Overall, the precious metals market has shown resilience amid fluctuating economic signals and central bank policies, with gold leading the way towards its first weekly gain in a month.
(By Commoditiescontrol Bureau: 09820130172)
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