Gold Falls, Ready To Rise At Week-High As Growth Concerns Loom

Gold Falls, Ready To Rise At Week-High

In Asia on Friday morning, gold was lower, but it remained on track for its first weekly increase since last month. Investors flocked to the safe-haven investment as the dollar fell from two-decade highs, owing to mounting fears about US economic growth.

The price of gold futures fell by 0.01 percent. Fears of a recession are giving way to concerns about US growth, which is benefiting gold.

The Federal Reserve’s strong rate hike trajectory and numerical tightening, on the other hand, would be big downdrafts for gold.

The Federal Reserve of the United States will raise interest rates sooner than expected by the end of 2022, prolonging the already significant risks of a recession.

The People’s Bank of China kept the one-year loan prime rate (LPR) at 3.7 percent in Asia-Pacific while decreasing the five-year LPR to 4.45 percent from 4.6 percent the previous month. The Reserve Bank of New Zealand will announce its policy decision.

It’s been an exciting week, as the break below $1,800, fueled by increasing real rates, allowed long-term strategic buyers to get ahead of a technical downturn. SPDR Gold Trust stated its holdings increased 0.66 percent as a result of the higher demand.

Silver and platinum lost 0.3 percent and 0.7 percent, respectively, among other precious metals. China is quietly increasing its purchases of oil from Russia at low prices, filling the void created by Western purchasers’ withdrawal from the country.

The move comes a month after the world’s largest oil importer cut back on Russian shipments for fear of seeming to actively support Moscow and going to expose its state-owned oil companies to sanctions.

For fear of falling foul of sanctions or attracting bad attention, many European refiners have already quit purchasing from Russia. China’s seaborne imports of Russian oil will hit a relatively close 1.1 million BPD.

Shortly after the invasion, Britain and other major oil customers halted Russian oil shipments. A new wave of sanctions, including a restriction on Russian oil purchases, is being finalized by the European Union.

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