PRECIOUS gold firms, while the dollar is slipping, ready for weekly gains


B.and Bharat Gautam

October 1 (Reuters)Gold rose quite a bit on Friday as a weaker dollar and concerns about rising inflation and growth risks countered bets on looming interest rate hikes and kept gold on track for a small weekly gain.

Spot gold XAU = rose 0.1% to $ 1,758.58 an ounce by 1424 GMT. US gold futures GCv1 rose 0.1% to $ 1,759.00.

The dollar .DXY pulled back, making gold cheaper in other currencies and fueling demand.

Gold was on track for its first weekly uptrend since September 3, up about 0.6% so far, while a fall in the dollar on Thursday helped it rebound by about 2%.

A plunge in the dollar and lower bond yields keep gold propped up as investors reposition themselves for the fourth quarter, said Phillip Streible, chief market strategist at Blue Line Futures in Chicago. USD /US/

Gold’s appeal helped European and Asian stocks fall on concerns about inflation and a possible slowdown in growth. .NMKTS / GLOB

“Anyone trying to convince market participants that there is no such thing as inflation is a fool’s game,” and with energy prices rising due to a crisis in China and Europe likely to hurt growth and earnings, this will be a volatile October for us and in turn, support gold, said Saxo Bank analyst Ole Hansen.

The prospect that the US Federal Reserve could slash economic support this year has continued to put pressure on gold, some analysts said, as reduced incentives and higher interest rates tend to drive government bond yields higher and gold’s opportunity cost higher .

silver XAG = added 1% to $ 22.42 an ounce.

platinum XPT = rose 1% to $ 972.64 an ounce while palladium XPD = fell 0.27% to $ 1,904.60 with both heading for weekly drops.

Aside from the semiconductor scarcity, which is hurting the automotive industry, the decline in palladium is also being driven by the general weakness in “industrial metals from China,” added Hansen, given the lack of liquidity.

Returns on gold versus dollar and US government bonds

(Reporting by Bharat Govind Gautam, Arpan Varghese and Nakul Iyer in Bengaluru; editing by Shailesh Kuber)

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

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