Gold is falling from a weekly high as the dollar’s recovery fades

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October 1 (Reuters)Gold fell on Friday after rising to a one-week high above the key $ 1,750 level in the previous session as the dollar rebounded and the metal became expensive for other currency holders.

BASICS

* Spot gold XAU = fell 0.1% to $ 1,754.64 an ounce by 0139 GMT after rising nearly 1.8% on Thursday as the dollar index fell.

* The dollar = USD Most of these losses made up for on Friday and the final quarter of 2021 started at almost the highest level of the year.

* US gold futures GCv1 fell 0.1% to $ 1,755.90.

* Chicago Federal Reserve Bank President Charles Evans said Thursday that the supply shocks that are now driving prices will wear off next year, and low interest rates will continue to be needed to keep U.S. inflation steady at $ 2 % to lower.

* Bank of Japan policymakers saw increasing risks to the economy in September from slowing Chinese growth, semiconductor shortages and factory closures in Southeast Asia, which could affect growth forecasts at their next policy meeting.

* Gold has traditionally been viewed as a hedge against inflation, although reduced central bank incentives and interest rate hikes tend to drive government bond yields higher, which in turn leads to higher opportunity costs for interest-free gold.

* Thursday data showed an unexpected surge in weekly US jobless claims to a seasonally adjusted 362,000 for the week ending September 25. Economists had forecast 335,000 applications in a Reuters survey.

* A majority in the US Senate voted Thursday for the government to remain fully operational by the end of this week, when the new fiscal year begins.

* Silver XAG = fell 0.6% to $ 22.06 an ounce.

* Platinum XPT = fell 0.9% to $ 954.51 and palladium XPD = was up 0.1% to $ 1,907.96.

DATES / EVENTS (GMT)

0800 EU Markit Manufacturing Final PMI September

1230 US consumption, adjusted MM Aug

1400 US ISM Manufacturing Purchasing Managers’ Index Sept.

1400 U.S. U Mich Sentiment Finale Sept.

(Reporting by Nakul Iyer in Bengaluru; editing by Subhranshu Sahu)

(([email protected]; within the US +1 646 223 8780, outside the US +91 80 6749 0417; Reuters Messaging: [email protected]))

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.


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