(C) Reuters. Gold Heads for Third Weekly Advance as Inflation, Fed in Focus
(Bloomberg) — Gold headed for a third weekly gain as the dollar retreated and Treasury yields wavered, with investors weighing signs of inflation and economic recovery.
Traders mostly shrugged off concerns over Federal Reserve minutes Wednesday that showed some policy makers open to talking about tapering bond purchases, focusing instead on the U.S. central bank’s accommodative stance. Meanwhile, applications for U.S. state unemployment insurance fell last week to a fresh pandemic low, signaling steady improvement in the job market as remaining business restrictions are lifted.
Bullion is trading near the highest level in more than four months amid rising inflation expectations and concerns over the resurgence of coronavirus cases in some countries. Holdings in exchange-traded funds backed by the precious metal have resumed an uptrend. Gold may have also been supported after the extreme volatility in cryptocurrencies this week.
Spot gold slipped 0.3% to $1,872.06 an ounce by 10:28 a.m. in Singapore. Prices climbed to $1,890.13 on Wednesday, the highest since Jan. 8, and are up 1.4% this week. Silver and palladium fell, while platinum rose. The Bloomberg Dollar Spot Index was flat after dropping 0.4% on Thursday.
(C)2021 Bloomberg L.P.
Gold Heads for Third Weekly Advance as Inflation, Fed in Focus
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