Gold Gains Slightly as Dollar Weakens, Relieving Pressure After April's Decline
Gold prices rebounded on Friday (May 1), supported by a weaker dollar after the precious metal recorded a slight decline throughout April and remained near a one-month low.
At 10:19 AM ET (14:19 GMT), spot gold rose 0.7% to US$4,653.35/oz, while gold futures rose 0.8% to US$4,665.69/oz. Trading activity was relatively quiet due to market holidays in most of Europe and Asia.
Despite the daily rebound, gold remains under pressure after declining by around 1% in April, extending the decline following a sharp decline of nearly 12% in March. Inflationary pressures linked to the Iran war have driven a shift in sentiment toward the dollar, while surging oil prices have also weighed on gold due to disruptions to global crude supplies.
Additional pressure comes from hawkish signals from several major central banks. Several Fed officials highlighted the risks of energy-driven inflation, while the ECB, Bank of England, and Bank of Japan indicated room for near-term tightening amid rising oil prices. The primary transmission channel, expectations of higher interest rates, tends to lift yields and increase the opportunity cost of holding non-yielding assets like gold.
In other precious metals markets, movement was mixed. Spot silver rose 4.1% to US$76.7855/oz but remained down around 2% throughout April, while platinum strengthened 1.4% to US$2,022.50/oz after posting modest gains the previous month. (srh)*
Source: Newsmaker.id
