Gold Holds, Fed Signals Still Loom
Gold prices are stable after recording their first weekly gain since May. The precious metal briefly hovered around US$4,162 per troy ounce, after strengthening more than 2% last week.
Gold's previous gains were supported by declining expectations for a Federal Reserve interest rate hike. Weaker US employment data and falling energy prices led the market to believe the Fed was under less pressure to tighten monetary policy again.
Weakening oil prices also helped ease inflationary pressures. Oil fell after more tankers passed through the Strait of Hormuz and OPEC+ signaled it would increase supply. This has eased concerns about inflation in the energy sector.
However, gold's gains remain limited because US inflation remains above the Fed's target. Analysts believe the central bank will remain cautious about easing policy. In addition to energy, the market is also monitoring price pressures from investments in artificial intelligence (AI) and weather-related supply disruptions.
Meanwhile, the US dollar has strengthened again after weakening last week. The strengthening dollar also held back gold, making it more expensive for buyers using other currencies. Furthermore, the market is also paying attention to efforts by US President Donald Trump and his allies to reshape the Federal Reserve.
At 11:35 a.m. Singapore time, the spot gold price fell 0.3% to US$4,166.47 per troy ounce. Silver weakened 0.7% to US$61.98 per troy ounce, while platinum and palladium moved relatively stable. Currently, gold is still supported by easing expectations of interest rate hikes, but a strengthening dollar and persistently high inflation limit its upside potential. (asd)*
Source: Newsmaker.id
