Sun, 05 Feb 2023

Gold rises on slower Fed rate hike expectations

Xinhua
21 Jan 2023, 07:55 GMT+10

CHICAGO, Jan. 20 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose on Friday as the Federal Reserve is expected to slow its rate hikes.

The most active gold contract for February delivery rose 4.3 U.S. dollars, or 0.22 percent, to close at 1,928.2 dollars per ounce.

Gold rose 0.3 percent for the week, the fifth weekly climb in a row, and the longest weekly gain since August 2020.

Philadelphia Fed President Patrick Harker said Friday at a New Jersey Bankers Association meeting that he expects 25-basis point rate increases to be appropriate going forward after an aggressive rate-hiking campaign last year. He expects the Federal Reserve will need to raise rates a few more times.

Investors have started to price in the risk associated with U.S. real estate credit, which market analysts note is distressed, supporting gold.

The National Association of Realtors reported Friday that U.S. existing-home sales fell 1.5 percent to a seasonally adjusted annual rate of 4.02 million in December, the lowest monthly rate since November 2010.

Silver for March delivery rose 6.5 cents, or 0.27 percent, to close at 23.935 dollars per ounce. Platinum for April delivery rose 6.7 dollars, or 0.64 percent, to close at 1,047.8 dollars per ounce.

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