Singapore: Gold has gained modestly in late-week trading but has been set for a weekly loss as the US dollar climbed to a near one-month high. Spot Gold has risen 0.4 percent to $5,020.95 per ounce, yet has been down about 0.5 percent for the week so far. US Gold futures for April delivery have increased 0.8 percent to $5,037.60.
Market participants have continued to monitor the US Personal Consumption Expenditures data, the Federal Reserve’s preferred inflation gauge, for signals on monetary policy. Minutes from the Federal Reserve’s January meeting have shown that several policymakers were open to further rate hikes if inflation remains elevated. Traders have slightly reduced expectations for a June rate cut, according to CME’s FedWatch Tool.
Higher interest rate expectations and a firmer dollar have typically weighed on non-yielding assets such as Gold. At the same time, analysts have noted that investor interest in precious metals remains intact, with buyers looking to enter positions during price pullbacks.
Geopolitical tensions have also remained a factor in supporting bullion. US President Donald Trump has warned Iran to reach a deal over its nuclear programme within 10 to 15 days or face consequences, prompting threats of retaliation from Tehran against US bases in the region. Such developments have added to safe-haven considerations in the Gold market.
Goldman Sachs has indicated that a recent slowdown in central bank Gold purchases due to price volatility could prove temporary. The brokerage has projected a positive medium-term outlook for Gold prices, though with elevated volatility.
Physical demand has been subdued in India this week as price swings discouraged buyers, while major Asian hubs including China have been closed for Lunar New Year holidays. Among other precious metals, spot silver has gained 0.6 percent to $78.83 per ounce, platinum has risen 0.8 percent to $2,085.64, and palladium has edged 0.4 percent higher to $1,691.62.
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