Gold on Friday hit a more than three-week high, amid speculation that the US Federal Reserve could slow the pace of interest rate increases as the US economy slows.
Bullion’s climb, supported by a weaker US dollar and declining US Treasury yields, saw spot gold gain about 0.4 percent to US$1,762.50 an ounce to post a second straight weekly gain.
While the Fed raised rates by 75 basis points again this week, data showing that the US is in a technical recession signaled that the central bank could become less aggressive as it continues to combat inflation.
Despite the recent rebound, gold recorded a fourth straight monthly loss.
US Secretary of the Treasury Janet Yellen gave a glass-half-full assessment of the economy, acknowledging a slowdown she called necessary to tame inflation, while rejecting the notion the country had entered a recession.
“Gold bugs are falling like dominoes, but given the slowing trend in growth, [US Fed Chairman Jerome] Powell catalyzed a short covering rally across all assets by tying a jumbo-sized September hike to data. Gold markets are set-up for additional price weakness to ensue,” TD Securities senior strategist Daniel Ghali said in a note.
Investors are likely to turn their focus to next week’s monthly jobs report from the US government, which is forecast to show another solid month of hiring.
Powell said the labor market remains “extremely tight,” referencing a near-record number of job openings and historically low unemployment.
“If the US economic data turn out to be weaker next week, gold is likely to make further gains,” Commerzbank AG analyst Carsten Fritsch said in a note.
“This applies in particular to the report on the labor market, as Fed Chair Powell has still been describing the market as robust, which besides the persistently high inflation is another argument in favor of further rate hikes,” Fritsch said.
Other commodities:
‧Silver for September delivery rose US$0.33 to US$20.20 an ounce, up 8.49 percent from a week earlier, while September copper rose US$0.10 to US$3.57 a pound, gaining 6.57 percent weekly.
Additional reporting by Reuters and AP
NEW IDENTITY: Known for its software, India has expanded into hardware, with its semiconductor industry growing from US$38bn in 2023 to US$45bn to US$50bn India on Saturday inaugurated its first semiconductor assembly and test facility, a milestone in the government’s push to reduce dependence on foreign chipmakers and stake a claim in a sector dominated by China. Indian Prime Minister Narendra Modi opened US firm Micron Technology Inc’s semiconductor assembly, test and packaging unit in his home state of Gujarat, hailing the “dawn of a new era” for India’s technology ambitions. “When young Indians look back in the future, they will see this decade as the turning point in our tech future,” Modi told the event, which was broadcast on his YouTube channel. The plant would convert
‘SEISMIC SHIFT’: The researcher forecast there would be about 1.1 billion mobile shipments this year, down from 1.26 billion the prior year and erasing years of gains The global smartphone market is expected to contract 12.9 percent this year due to the unprecedented memorychip shortage, marking “a crisis like no other,” researcher International Data Corp (IDC) said. The new forecast, a dramatic revision down from earlier estimates, gives the latest accounting of the ongoing memory crunch that is affecting every corner of the electronics industry. The demand for advanced memory to power artificial intelligence (AI) tasks has drained global supply until well into next year and jeopardizes the business model of many smartphone makers. IDC forecast about 1.1 billion mobile shipments this year, down from 1.26 billion the prior
People stand in a Pokemon store in Tokyo on Thursday. One of the world highest-grossing franchises is celebrated its 30th anniversary yesterday.
Zimbabwe’s ban on raw lithium exports is forcing Chinese miners to rethink their strategy, speeding up plans to process the metal locally instead of shipping it to China’s vast rechargeable battery industry. The country is Africa’s largest lithium producer and has one of the world’s largest reserves, according to the US Geological Survey (USGS). Zimbabwe already banned the export of lithium ore in 2022 and last year announced it would halt exports of lithium concentrates from January next year. However, on Wednesday it imposed the ban with immediate effect, leaving unclear what the lithium mining sector would do in the
RSS