Gold Heads for Second Weekly Loss as Traders Assess Dollar, Fed
(Bloomberg) -- Gold is heading for a second straight weekly loss as the dollar advances and concerns simmer that the Federal Reserve could soon reduce support for the U.S. economy.
Bullion slid to the lowest since March at the start of the week after a report showed the U.S. labor market recovering faster than expected. The job gains have led to a slew of Fed officials raising the prospect of tapering its massive bond-buying program soon, including Kansas City Fed President Esther George.
“Fed representatives did speak out last night in favor of scaling back the bond purchases soon,” Daniel Briesemann, an analyst at Commerzbank AG, said in a note. “Our economists also continue to expect the Fed to decide in the fourth quarter to begin this so-called tapering.”
Substantial progress in the jobs market will be key to the Federal Reserve’s eventual reduction of stimulus, Chairman Jerome Powell has said. How long inflation will persist has been central to discussions around the Federal Reserve’s timetable for tightening stimulus, a key driver for the gold market.
Spot gold rose 0.1% at $1,753.23 an ounce by 4:18 p.m. in New York. Bullion futures for December delivery fell 0.1% to settle at $1,751.80 on the Comex. Spot silver and palladium fell, while platinum edged higher.
©2021 Bloomberg L.P.