· Gold extended its gains on Friday, buoyed by a dip in the dollar and U.S. Treasury yields after data showed U.S. retail sales unexpectedly stalled in April.
· Spot gold rose 0.6% to $1,838.05 per ounce by 1:44 p.m. EDT (1744 GMT), heading for a second week of gains. U.S. gold futures settled 0.8% higher at $1,838.1.
· Dollar and real yields “need to remain supportive for gold to rise in the near term,” said Suki Cooper, an analyst at Standard Chartered.
· “Barring short-term corrections, a dovish Fed and rising inflation expectations are likely to keep gold price risk skewed to the upside over the course of the year.”
“Disappointing (retail sales) data also opened the gate for gold prices to challenge the next hurdle around $1,850/oz,” Cooper added.
· Other key U.S. economic readings this week showed a bigger-than-expected rise in consumer prices and a drop in weekly jobless claims to a 14-month low, intensifying concerns over rising inflation and prospects of higher interest rates.
Federal Reserve officials, however, have maintained they expect any rise in inflation to be short-lived, while pledging to keep rates low until the economy reaches full employment.
· the economic recovery off course by raising rates,” StoneX analyst Rhona O’Connell said. “There’s too much risk involved to start either aggressive tapering or raising rates because there is not enough underlying strength in the economy.”
“We’ve got global issues, and particularly with uncertainties over places like Brazil and India,” she said, referring to the two countries now reporting the highest number of new daily COVID-19 infections and deaths.
· India’s total tally of coronavirus infections climbed past 24 million on Friday, with widespread restrictions also taking a toll on physical gold demand.
· Elsewhere, palladium rose 1.1% to $2,894.21 per ounce, while platinum gained 1.3% to $1,221.53.
· Silver rose 0.7% to $27.26 per ounce.
· Covid variant from India more transmissible and threatens England lockdown easing, Boris Johnson says
The U.K. will now accelerate second doses of vaccines for the over-50s and the clinically vulnerable due to concerns about the variant from India.
· UK to make final lockdown easing decision on June 14
· Australia sticks by plan to re-open border in mid-2022
· Deadly violence intensifies in Gaza Strip and Israel as Biden urges de-escalation
Deadly violence between Israel and Palestinian militants in Gaza intensified Friday, as President Joe Biden called for a de-escalation in the worst fighting since 2014.
“Palestinians — including in Gaza — and Israelis equally deserve to live in dignity, safety and security. No family should have to fear for their safety within their own home or place of worship,” the president said in a statement on Friday marking the Eid holiday and the end of Ramadan.
· Gaza conflict rages as Israeli PM says air strikes will continue
Reference: CNBC, Reuters
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