Global Statistics

All countries
194,365,141
Confirmed
Updated on 25/07/2021 12:44 am
All countries
174,723,049
Recovered
Updated on 25/07/2021 12:44 am
All countries
4,167,679
Deaths
Updated on 25/07/2021 12:44 am

Global Statistics

All countries
194,365,141
Confirmed
Updated on 25/07/2021 12:44 am
All countries
174,723,049
Recovered
Updated on 25/07/2021 12:44 am
All countries
4,167,679
Deaths
Updated on 25/07/2021 12:44 am

Gold tops its biggest weekly loss in more than a year

(Bloomberg) – Gold traded little change, heading for a weekly slide, after a regional Federal Reserve chairman said high inflation could require the U.S. central bank to tighten its monetary policy next year.

It may be appropriate for the Fed to start raising interest rates next year given an inflation forecast above the US central bank’s 2% target, said St. Louis Fed Chairman James Bullard. “I started from late 2022,” Bullard said Friday during a television interview on CNBC, referring to interest rate projections released Wednesday by the US central bank. After a policy meeting of two days. Higher rates reduce the demand for non-interest-bearing gold as an alternative asset.

The Bloomberg Dollar Spot Index rose to a high of more than two months after Bullard’s comments, hurting demand for dollar-denominated bullion.

Gold is heading for its biggest weekly loss in 15 months, weighed down by concerns about tighter monetary policy. Still, Fed Chairman Jerome Powell warned that discussions about raising interest rates would be “very premature.” The central bank also said it was aware of threats of runaway price increases triggered by persistently higher-than-expected inflation readings.

“In the absence of inflation expectations threatening to undock, with the Fed unwilling or unable to calm things down, gold will have a hard time returning to a bull market,” strategists at Macquarie Group Ltd. wrote in a note. The bank expects gold to slide to $ 1,600 an ounce by the end of the year.

Having surpassed several key technical levels in just two days, prices will likely struggle to mount a quick recovery, said Carsten Fritsch, an analyst at Commerzbank AG.

Spot gold was up less than 0.1% to $ 1,774.04 an ounce at 2:08 p.m. in New York. Prices are down 5.5% this week, the most since March 2020.

Futures for August delivery on the Comex fell 0.3% to settle at $ 1,769. Spot silver changed little, while platinum and palladium slipped. The Bloomberg Dollar Spot Index added 0.3% to extend this week’s gain to about 2%.

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