Gold near eight-month high

22 Jan, 2023 - 00:01 0 Views
Gold near eight-month high

The Sunday Mail

Gold steadied in Asia after jumping to an eight-month high in the previous session amid a darkening economic outlook in the US and Europe.

Federal Reserve vice chairperson Lael Brainard, considered a dove, said rates in the US will need to stay high for a period to cool inflation, while European Central Bank president Christine Lagarde vowed no let-up in efforts to return price gains to within the 2 percent target.

In Japan, inflation hit 4 percent for the first time in more than four decades.

Bullion has been rallying since early November on signs the Fed was turning less hawkish, as the dollar and Treasury yields fell.

It may now be starting to benefit from haven demand as the outlook for the US and European economies darkens, even as China is expected to rebound later this year.

Spot gold declined 0,1 percent to US$1 930.57 an ounce as of 8.56am in Singapore on Friday after jumping 1, 5 percent on Thursday, and was on track for its fifth consecutive weekly gain.

The Bloomberg Dollar Spot Index was steady.

Silver, platinum and palladium were all relatively flat.

Economic data from the US last week has painted a mixed picture. – Bloomberg.

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