Gold prices globally

 

Global gold prices rose near the highest level in a month during trading on Friday, after data indicated a decline in price pressures in the United States, while traders awaited statements from several US Federal Reserve officials.  

“Markets were relieved that there were no bad surprises in the PCE report,” said Matt Simpson, chief analyst at City Index. “Gold traders rejoiced in the fact that core PCE slowed year-on-year.” 

US Department of Labor data revealed that initial unemployment claims increased by 13,000 applications to 215,000 applications in the week ending February 24th, while it was expected to rise to 209,000 applications. 

 Personal consumption expenditures inflation in January rose 2.4%, the smallest annual increase since February 2021, after a 2.6% rise in December, data showed on Thursday. US Federal Reserve members are generally focused on lower inflation, which they say is likely to pave the way for interest rate cuts later this year. 

 Low interest rates enhance the attractiveness of the non-yielding yellow metal.  

Money market pricing shows traders are pricing in three-quarter point US interest rate cuts for 2024. 

 Investors are awaiting statements from at least six other Federal Reserve officials later on Friday.  

Holdings of the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 3.3% in February and 6.4% so far this year.  “While negative ETF flows are limiting gold prices, the main reason gold prices remain supported is the Chinese central bank, which was the second-largest booster of gold reserves in the fourth quarter.” 

Gold upon settlement 

Gold futures prices consolidated their gains at the settlement of the last February sessions, yesterday, Thursday, with the absorption of data that showed a calming of inflationary pressures in the United States, which reinforces expectations that the Federal Reserve will soon begin a monetary easing cycle. 

 Upon settlement of Thursday’s trading, the prices of gold futures contracts for April delivery rose by 0.6%, or $12, at $2,054.7 per ounce, reducing February’s losses by 0.6%, and continuing their decline for the second month in a row. 

 Gold and dollar now 

Gold futures are now up 0.1% to $2,056 an ounce.  

Meanwhile, spot gold contracts rose by about 0.2% to $2,048 per ounce. After reaching $2,050 on Thursday, its highest level since February 2. As the metal is heading to achieve its second weekly gain in a row.  Meanwhile, the dollar index fell 0.07% to 104.027 points.  

other metals 

Platinum rose  0.6 percent to $881.40 an ounce in spot trading, while palladium also rose 0.6 percent to $947.35. But the two metals posted a  second straight month of declines as palladium hit its lowest level in more than five years at $849.13.  

Platinum group metals producer Impala Platinum said it may close some of its South African mining operations  if metals prices continue to fall and restructuring efforts do not result in improved profitability. 

Spot silver rose  0.3 percent to $22.74 an ounce.