Gold down, poised for first weekly gain since April on growth concerns

By Gina Lee

Investing.com – Gold was down on Friday morning in Asia but is expected to see its first weekly gain since mid-April 2022. The dollar retreated from two-decade highs amid growing concerns over economic growth US led investors to turn to this safe-haven asset.

Gold futures edged down 0.01% to $1,841.05 as of 00:34 ET (0434 GMT), with the yellow metal climbing around 1.5% over the week nowadays.

“Recession fears are now giving way to growth fears in the US, and the latter is helping gold,” Stephen Innes, managing partner at SPI Asset Management, told Reuters.

However, the US Federal Reserve’s aggressive rate hike path and quantitative tightening would still be major downtrends for gold, he added.

The U.S. central bank will raise interest rates by the end of 2022 from what was expected just a month ago, preserving already significant risks of a recession, according to a Reuters poll. economists.

In Asia-Pacific, the People’s Bank of China kept the one-year loan prime rate (LPR) at 3.7%, while reducing the five-year LPR to 4.45% from 4.6% the previous month. . The Reserve Bank of New Zealand will also deliver its policy decision next week.

“It’s been an exciting week, after the clearing below $1,800 driven by higher real yields, this has opened the door for long-term strategic buyers to face a downside technical trend,” Innes said. .

Reflecting this growing demand, SPDR Gold Trust also said its holdings rose 0.66% to 1,056.18 tonnes on Thursday, following its recent losses.

In other precious metals, silver fell 0.3% to $21.83 an ounce but gained around 3.6% in the past week. Platinum fell 0.7% and palladium edged down 0.1%, but is expected to post weekly gains of around 1.7% and 2.8% respectively.

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