Gold poised for weekly gain as dollar slides
- Date: 27-May-2022
- Source: Zawya
- Sector:Financial Markets
- Country:Middle East
Gold poised for weekly gain as dollar slides
Gold prices firmed on Friday as the dollar continued to weaken, and helped put bullion on track for a second straight weekly rise amid cooling bets for a more aggressive Federal Reserve monetary policy.
Spot gold was up 0.2% at $1,854.05 per ounce, by 0325 GMT.
U.S. gold futures were up 0.2% at $1,851.90.
For the week so far, bullion is up 0.4%. Gold this week has been supported by a moderation somewhat in market expectations from the Fed's monetary policy for next year, and most importantly the weaker U.S. dollar, said Ilya Spivak, a currency strategist at DailyFX.
There is price support at $1,830 on the downside and on the topside the next key level is around $1,885, Spivak added.
Minutes of the Fed's May 3-4 policy meeting released on Wednesday highlighted, as the market expected, that most participants favouring additional 50 basis point rate hikes at the June and July meetings.
Higher short-term U.S. interest rates and bond yields raise the opportunity cost of holding bullion, which yields nothing. The dollar index fell en route a second straight weekly decline, making bullion less expensive for buyers holding other currencies.
"We need a clearer signal that hard economic data is turning sour for the Fed to