Arab Press

بالشعب و للشعب
Tuesday, Jan 21, 2025

Gold retreats as dollar gains upper hand

Gold retreats as dollar gains upper hand

Gold retreated on Thursday as rival safe-haven dollar advanced and outweighed support for bullion from lingering economic risks, while traders digested the impact of weak data on the interest rate outlook.
Spot gold was down 0.8 percent to $2,013.84 per ounce by 1:40 p.m. EDT (1740 GMT), while US gold futures settled down 0.8 percent to $2,020.50.

Gold popped up after data showed a jump in weekly jobless claims and the smallest annual increase in producer prices last month in over two years.

However, the metal soon gave up those gains as the dollar rose, making bullion more expensive for overseas buyers.

The banking situation with PacWest has prompted some safe haven demand into the US dollar, said Jim Wyckoff, senior analyst at Kitco Metals.

Investors also took stock of comments from Minneapolis Fed chief Neel Kashkari that an extended period of high rates would be necessary if inflation stayed stubbornly high.

While this weighs on sentiment for gold “to a certain extent, the precious metal remains in its uptrend channel established in November,” said Alexander Zumpfe, a precious metals dealer at Heraeus.

Gold is traditionally considered a hedge against inflation, but elevated interest rates dim appeal for zero-yield bullion.

On Wednesday, data showed the annual increase in US consumer prices slowed to below 5 percent in April for the first time in two years, but remained well above the Fed’s 2 percent target.

With inflation still sticky amid a slow deterioration in the US economy, the Fed is less likely to feel the need to hike rates further, keeping gold in a sideways to higher trend, said David Meger, director of metals trading at High Ridge Futures.

Silver plunged 4.9 percent to $24.18 per ounce, platinum shed 2 percent to $1,091.86 and palladium lost 3.4 percent to $1,551.96.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Five Billionaires on Track to Break One Trillion Dollar Wealth Barrier
Julia Sebutinde to Lead International Court of Justice: A Historic Transition
Spain Proposes 100% Tax on Properties Purchased by Non-EU Residents
Rising Casualties and Intense Diplomacy: The Conflict in Gaza Continues
Joseph Aoun Elected as Lebanon's New President: Ending a Prolonged Power Vacuum
Joseph Aoun Elected Lebanon’s 14th President Amid Political Stalemate
Trump Signals Shake-Up at the Pentagon Amid Transition Concerns
U.S. Supreme Court Denies Trump's Last-Minute Bid to Block Sentencing in New York
Escalating Conflict in Gaza: Casualties Surge as Diplomatic Efforts Continue
Escalation in West Bank: Israeli Boy Killed in Palestinian Gun Attack
U.S. Supreme Court Denies Trump's Appeal to Delay Sentencing in New York Hush Money Case
Lancet Study Reveals Underestimation of Gaza War Death Toll by 40 Percent
Global Acclaim Follows Election of Lebanon's New President Joseph Aoun
Saudi Leaders Extend Congratulations to Joseph Aoun, New President of Lebanon
UN Accuses Israel of Restricting Humanitarian Aid in Northern Gaza
US Pledges $500 Million Military Aid Package to Ukraine
Ethiopia Endures a Series of Earthquakes in Brief Timespan
Joseph Aoun: Lebanon's Fourteenth President Amid a Legacy of Challenges
President Biden Reports Meaningful Progress on Gaza Agreement
Lancet Study Reveals Higher Gaza Death Toll than Official Reports
Global and Arab Welcome for Joseph Aoun's Election as Lebanon's President
Biden Cites 'Real Progress' in Gaza Deal Talks Amid Intense Negotiation Efforts
Escalation in Gaza: Casualties Rise Amidst Ongoing Negotiations
Escalating Conflict in Gaza: Casualties Surge as Negotiations Continue
Quaker Group Cancels NYT Ad Over Dispute on Gaza Terminology
IDF Imposes Media Restraints Amid Legal Concerns For Soldiers
Trump's Counter-terrorism Nominee Urges UK to Repatriate British IS Members from Syria
Uncovering Iraq's Mass Graves: A Haunting Search for the Missing
Kurdish Commander Appeals to Trump for Continued U.S. Military Presence in Syria
Global Powers Call for Stabilization Efforts in Syria Amid Transition
Syria at a Crossroads: The Unceremonious Collapse of the Assad Regime
Trump's Syria Conundrum: Staying Out May Be Easier Said Than Done
Syrian Rebel Leader Pledges to Dismantle Assad's Notorious Prisons
Escalation in Gaza: Increased Casualties Amid Ongoing Conflict
Dissecting Luxury: A Study of American Society in the Digital Age
Escalating Violence in Gaza as Ceasefire Negotiations Intensify
US Eases Missile Technology Export Regulations for Key Allies
Escalation in Gaza Conflict: Fatal Strikes and Escalation in the West Bank
Gaza Cola: A Palestinian Initiative Aimed at Rebuilding Amidst Conflict
Poland Shuts Consulate in Saint Petersburg Amid Rising Diplomatic Tensions
Miracle at Sea: Baby Born on Migrant Vessel Rescued by Spanish Coast Guard
Saudi Crown Prince Engages in Diplomatic Dialogue with Ukraine’s Zelensky
Israeli Military Recovers Body of Hostage in Gaza, Evidence Suggests Son Also Killed
Explosion at Ammunition Depot Rocks Syria's Idlib Region
Saudi Arabia Battling Unprecedented Floods Amid Torrential Rains
Cease-fire Negotiations in Qatar: No Timeline for Resolution
UN Seeks Additional $371.4 Million for Lebanon Amidst Ongoing Crisis
Saudi Arabia Continues Aid Bridge to Syria Amid Ongoing Crisis
Israel Declares West Bank a 'Primary Arena' of Threats Amid Escalating Conflict
U.S. Sanctions Shake Sudan's Political Landscape Amid Ongoing Conflict
×