Gold prices rose on Friday but were set for a weekly decline after falling from record highs as the U.S. dollar and Treasury yields rebounded ahead of Federal Reserve Chair Jerome Powell’s speech later today which could hint at the monetary policy outlook.
In the UAE, gold prices declined by AED1 with 24-carat gold inching down to AED302 and 22-carat gold declining to AED279.5. Meanwhile, 21-carat gold reached AED270.75 and 18-carat gold hit AED232.
Globally, spot gold gained 0.31 percent to $2,495.09, as of 5:13 GMT, after hitting a new all-time high of $2,531.60 on Tuesday. Meanwhile, U.S. gold futures rose 0.53 percent to $2,530.05.
U.S. dollar recovers
Gold prices fell almost 1 percent this week after hitting a record high on Tuesday. The recovery of the U.S. dollar and benchmark U.S. 10-year yields following the unexpected increase in unemployment impacted gold prices by the end of the week. Fed officials on Thursday supported the case for a September interest rate cut as inflation eased and the labor market signaled stability.
Traders have fully priced in an interest rate cut next month, with a 76 percent chance of a 25-basis-point cut, according to the CME FedWatch tool. Lower interest rates tend to boost the appeal of non-yielding assets like bullion. Market focus now shifts to Fed Chair Powell’s comments at the Kansas City Fed’s Jackson Hole, due at 14:00 GMT.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.13 percent on Thursday.
Gold prices remained close to the $2,500 mark as talks to ease geopolitical tensions in the Middle East began.
Read: UAE gold prices inch down, global rates dip on stronger U.S. dollar, Fed rate cut outlook
Other precious metals
In line with the rise in gold prices, the precious metals market saw a positive movement. Spot silver gained 0.71 percent to $29.19, platinum was up 0.77 percent to $950.90, and palladium gained 0.05 percent to $933.43.
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