https://www.miningweekly.com
Gold|Platinum|System
Gold|Platinum|System
gold|platinum|system

Fed slowdown bets steer gold toward second quarterly rise

31st March 2023

By: Reuters

  

Font size: - +

Gold prices held steady on Friday, but the safe-haven metal was bound for its second straight quarterly gain after recent banking turmoil raised hopes of a less-aggressive US Federal Reserve and shored up interest in bullion.

Spot gold was flat at $1 980.70 an ounce at 11:08 GMT. US gold futures were unchanged at $1 997.10.

Gold is just consolidating and there is focus on inflation data due later in the day, said Carlo Alberto De Casa, external analyst at Kinesis Money.

U.S. Personal Consumption Expenditures (PCE) data is due at 12:30 GMT and could offer cues on the Fed's policy path.

Bullion prices have risen by more than 8% this quarter and are also set for their strongest month since July 2020.

Last week gold topped $2 000 after the sudden collapse of two US regional lenders drove bets that the US central bank might pause interest rate hikes to stem the risk of contagion in the global banking system. However, prices retreated after authorities initiated rescue measures.

A break above $2 000 is feasible, especially if data supports the possibility of a Fed pause, said Craig Erlam, senior market analyst at OANDA.

"It may still take a couple of months, but the central bank has every reason to pause now and that could be a bullish factor for gold going forward," he said.

According to CME FedWatch tool, investors see a 47.5% chance of the Fed leaving rates unchanged.

In other precious metals, silver rose 0.1% to $23.90 an ounce, platinum XPT= fell 0.1% to $984.48 and palladium XPD= was up 2.1% at $1,494.87.

Platinum and palladium were both heading for a quarterly fall.

"Palladium price more vulnerable to demand than supply shocks," Metals Focus said in a note.

"Automakers currently hold an abundance of PGMs (platinum group metals), as they bought a larger quantity last year than they utilised. This overstocking has left the industry with an unusually long position in palladium."

Edited by Reuters

Comments

Showroom

Alco-Safe
Alco-Safe

An unmanned breathalyser that is made to be tough and simple to use. Can be used in any environment for operator-free breathalyser testing.

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.118 0.151s - 91pq - 2rq
Subscribe Now