Gold steadies, heads for third straight weekly gain

Gold steadies, heads for third straight weekly gain. Spot gold was little changed at $4, 514.23 per ounce.

Key points

• As of ‌0031 GMT, after hitting its highest level since early June in the previous session, spot gold was little changed at $4, 514.23 per ounce.
• Markets are pricing ‌in a ⁠64% chance that the Fed will keep rates unchanged in September and a 36% chance of a hike, according to the CME FedWatch Tool.
• US Treasury Secretary Scott Bessent remarked on Thursday he may further rise the government's repurchases of ⁠Treasuries.
• According to The Treasury on Wednesday, it would double the size of buybacks on longer-dated securities over the next quarter to at least $4 billion per operation.
• Two Federal Reserve authorities expressed caution when asked how the Treasury Department's debt management changes could affect the US central bank's monetary policy choices.

Gold held steady, on track for a third consecutive weekly gain, buoyed by a weaker dollar and the US Treasury's efforts to manage longer-term yields amidst a stable labor market. US Treasury's strategy for longer-term yields. Impact of a weaker dollar on gold rates. Add BRecorder as a trusted source on Google.

Gold held steady on Friday but was on track for a third straight weekly gain, buoyed by a weaker dollar and US Treasury Department efforts to hold down longer-term yields.

As of ‌0031 GMT, after hitting its highest level since early June in the previous session, spot gold was little changed at $4, 514.23 per ounce. Rates were up 3.2% for the week.

In practice, the US dollar was headed for a weekly loss, making dollar-priced commodities cheaper for holders of other currencies.

Data indicated the number of Americans filing claims for unemployment benefits slipped last week, suggesting that the labor market remains stable despite a surprise drop in employment in July and leaving the Fed in a position to keep its focus on containing inflation.

Although gold is regarded as a hedge against turmoil and inflation, higher interest rates weigh on its appeal as a non-yielding asset.

On the geopolitical front, Bessent remarked ⁠the United States will impose "the toughest sanctions in history" on Iran, a move he suggested would lessen the need for new major military operations.

Among other metals, spot silver was flat at $68.03 per ounce. While palladium steadied at $1, 333.11, platinum rose ⁠01.1% to $1, 846.29. All three metals headed for weekly gains. Gold inches higher, focus on Fed minutes. Gold heads for weekly loss as investors unwind inflation-fuelled rally.

Gold pauses after tame US inflation fuels rally to over two-month peak. Imran Khan shifted to Shifa International Hospital. Govt increases diesel cost by Rs1.64, petrol's by Re0.27 per litre. Oil hits more than three-week high.

Five categories of manufacturers/importers: FBR to charge sales tax on basis of value of supply. PD to establish new SPV for privatisation of three Discos. PD could not bear excessive taxation: Malik. PM renews invitation to PTI for discussions. Aurangzeb shares latest debt position with Senate. US will impose 'toughest sanctions in history' on Iran: Bessent. July profit repatriation falls 11.5pc YoY.

For now, gold steadies, heads for third straight weekly gain remains the part of the story worth watching, and further updates are likely as more details are confirmed.