Gold was flat on Friday after a late rally erased initial losses and bullion ended the week nearly 3 percent higher as wariness over the US Federal Reserve’s message at next week’s monetary policy meeting pushed the dollar down.
Bullion’s third consecutive weekly rise marked its longest weekly winning streak since March, prior to the two-day $225 selloff in mid April.
A rally to climb back over a key technical threshold at $1,300 an ounce earlier in the week prompted speculators fearing a reversal of the recent downward price trend to rush to buy back bearish bets.
On Friday, sharp losses in industrial metals across the board more than offset the dollar’s fall to a five-week low, which was driven by speculation the Federal Open Market Committee (FOMC) will emphasize next week its intention to keep interest rates low for longer.
“It is understandable that money managers be wary of any slight change in verbiage from the Fed in these low interest-rate days,” said Carlos Perez-Santalla at brokerage Marex Spectron.
Bullion’s third consecutive weekly rise marked its longest weekly winning streak since March, prior to the two-day $225 selloff in mid April.
A rally to climb back over a key technical threshold at $1,300 an ounce earlier in the week prompted speculators fearing a reversal of the recent downward price trend to rush to buy back bearish bets.
On Friday, sharp losses in industrial metals across the board more than offset the dollar’s fall to a five-week low, which was driven by speculation the Federal Open Market Committee (FOMC) will emphasize next week its intention to keep interest rates low for longer.
“It is understandable that money managers be wary of any slight change in verbiage from the Fed in these low interest-rate days,” said Carlos Perez-Santalla at brokerage Marex Spectron.
courtesy of thenews.com.pk
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