Gold reaches a fresh peak and is poised for its finest week in five months
Prior to the release of important U.S. employment data later in the day, anticipation over a June interest rate decrease caused gold prices to reach new highs for the fourth straight session on Friday.
Prior to the release of important U.S. employment data later in the day, anticipation over a June interest rate decrease caused gold prices to reach new highs for the fourth straight session on Friday.
Spot gold was up 0.4% to $2,168.28 an ounce at 10:57 GMT, while U.S. gold futures were up 0.5% to $2,175.50 an ounce.
Early in the session, gold hit a new high of $2,170.99. It has increased by more than 4.1% this week and is expected to register its largest weekly percentage gain since mid-October.
«I believe the paper market is mostly responsible for the demand that has been observed. It’s merely speculative demand, according to Michael Widmer of Bank of America.
Tuesday saw gold reach its December high for the first time, mostly due to the bullion’s customary safe-haven cache and mounting indications of easing pricing pressures.
Key U.S. non-farm payrolls figures, which are scheduled for release at 13:30 GMT on the day, will be the main focus and will determine the direction of the market in the immediate term.
Since low rates lower the opportunity cost of storing bullion, they are favorable to the gold metal.
Other precious metals saw gains of 1.5% to $1,048.76 for palladium, 0.1% to $920.25 for platinum, and 0.9% to $24.53 for spot silver. Every week, they were all active.
