Gold Steadies Near Record as Markets Weigh Jobs Data, Fed Pivot
Gold steadied near a record high, with markets assessing healthy US jobs data released a day after the Federal Reserve kicked off its monetary-easing cycle with a 50-basis-point cut.
Bullion was on track for small weekly gain after closing 1.1% higher on Thursday, following a report that showed a slide in jobless claims to the lowest since May. The numbers re-ignited hopes the US will avoid a recession.
The precious metal briefly hit an all-time high above $2,600 an ounce on Wednesday in the immediate aftermath of the Fed's half-percentage-point cut, which was viewed as an aggressive start to its pivot to monetary easing. Still, the surge was short-lived after Chair Jerome Powell warned the size of the reduction shouldn't be seen as a "new pace." Lower borrowing costs tend to aid gold, as it doesn't pay interest.
Bullion is up more than a quarter so far this year, with recent gains supported by the anticipation of Fed easing. Central-bank buying and haven demand due to conflicts in the Middle East and Ukraine have also helped, while interest from retail investors has picked up. Its strength in the first half was also fueled by strong demand from Asian consumers.
Spot gold was little changed at $2,587.27 an ounce as of 7:31 a.m. in Singapore, up 0.4% for the week. The Bloomberg Dollar Spot Index was stable, following a 0.3% decline in the previous session. Silver and palladium were flat, while platinum dipped.
Source : Bloomberg
