Gold profits over 1%, however set for month-to-month decline

Gold profits over 1%, however set for month-to-month decline

Gold prices fall 1% on the week. Dollar stands for best monthly performance since 2015. Silver and platinum stand for monthly declines. US labor costs rose the most in 21 years in the first quarter

On Friday after the dollar declined, but the metal would end the month lower on bets of aggressive monetary tightening by the US Federal Reserve.Spot gold was up 0.9% to $1,911.14 an ounce by 1752 GMT. However, it was on track to post a 1.4% decline in April, its first monthly decline since January.US gold futures ended 1.1% higher at $1,911.70 an ounce.”The gold market has seen a steady sell-off over the past few weeks as the dollar has risen. Currently, the dollar index has fallen, driving gold prices higher,” said Edward Meir, analyst at ED&F Man Capital Markets.

The dollar index fell 0.7 billion on Thursday to hit a 20-year high, making gold cheaper for those who hold other currencies. Adding further appeal to bullion, data showed the US economy contracted unexpectedly in the first quarter amid a resurgence in COVID19 cases and a fall in government pandemic relief funds.Read more US labor costs rose to a 21-year high in the first quarter, signaling rising wage inflation and supporting the Fed’s aggressive monetary stance. read more “The GDP data and the cost-of-employment data showed that inflation remains fairly high, this is generally supportive of gold,” Meir said.

Gold is viewed as a hedge against rising inflation and uncertainty, but rising interest rates reduce its attractiveness by increasing the opportunity cost of holding the non-interest bearing asset. Market focus now shifts to the two-day Federal Reserve policy meeting beginning May 3, which is expected to see interest rates hike by half a percentage point. Continue reading spot silver down 0.3% to $23.06 an ounce while platinum was up 2.5% to $942.36. Both metals should post monthly declines.Palladium rose 3.9% to $2,317.97 an ounce.

Mining Paper

Thanks for sharing!
Gold Markets Silver