September 8 (Reuters) – Gold prices firmed on Friday but are likely to fall weekly as the dollar and Treasury yields held steady and strong US economic data raised concerns that the Federal Reserve might keep interest rates high for longer.
BASICS
* Spot gold was up 0.2% by 0116 GMT at $1,922.87 an ounce but expected a 0.8% weekly decline. US gold futures were up 0.2% to $1,946.90.
* The dollar was on track for its longest weekly winning streak in nine years, buoyed by a resilient US economic data release.
* State jobless claims unexpectedly fell to their lowest level since February last week, data showed on Thursday.
* US Treasury yields fell on Thursday as a surge following jobs data proved short-lived and investors followed comments from a host of Fed officials closely.
* New York Fed President John Williams kept options open on future US interest rate policy, acknowledging falling inflation and a more balanced economy, suggesting there is no urgency for a rate hike later this month.
* Chicago Fed President Austan Goolsbee said it’s possible, but not a guarantee, to put the economy on the “golden path” — where inflation falls but a recession is avoided.
* Dallas Fed President Lorie Logan said that while it “might be appropriate” to forgo a rate hike in September, further monetary tightening will likely be needed to bring inflation down to 2% in time.
* Data showed China held 69.62 million troy ounces of gold at the end of August, up from 68.69 million ounces at the end of July.
* Elsewhere, spot silver was up 0.2% to $23.01 an ounce and platinum was up 0.3% to $906.14. However, both weeks faced the worst weeks since June 23.
* Palladium is up 0.2% to $1,214.83 but is on course for a fourth straight weekly decline. DATA/EVENTS (GMT) 1600 Federal Reserve Releases United States Quarterly Financial Reports (Reporting by Deep Vakil in Bengaluru; Editing by Subhranshu Sahu)
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