GOLD prices on Friday were on track for their biggest weekly jump in five months, hovering near a record peak, as Federal Reserve Chair Jerome Powell’s comments reinforced investor hopes for a first US rate cut in June.
Spot gold was steady at US$2,159.49 per ounce, as of 0120 GMT, hovering around a record peak of US$2,164.09 hit in the previous session.
Spot prices have gained more than 3.5 per cent so far this week, on track to log their biggest weekly percentage gain since mid-October, the week when the Israel-Hamas conflict first escalated. This will also be bullion’s third straight weekly climb, if gains hold.
US gold futures edged 0.1 per cent higher to US$2,166.70.
Powell said the US central bank was “not far” from gaining the confidence it needs in falling inflation to begin cutting interest rates, which are likely to happen in the coming months.
The European Central Bank kept borrowing costs steady at record highs on Thursday while cautiously laying the ground to lower them later this year, saying it had made good progress in bringing down inflation.
Money market pricing shows traders are pricing in 92 basis points (bps) rate cuts by the Fed, and 97 bps rate cuts by the ECB this year, as per LSEG’s interest rate probability app.
Lower rates boost the appeal of non-yielding bullion.
Spot platinum fell 0.2 per cent to US$917.25 per ounce, palladium rose 0.4 per cent to US$1,037.82 and silver climbed 0.1 per cent to US$24.34. All three metals were poised for a weekly gain. REUTERS
