Gold climbs

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Gold started March on a positive note, with prices rising to a two-month high on Friday after muted economic data hardened expectations of a US interest rate cut by June.

Spot gold rose 2.1 percent to $2,086.21 per ounce, the highest since late December, and was on track for a second straight weekly rise.

US gold futures settled about 2 percent higher at $2,095.7.

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Benchmark US 10-year Treasury yields and the dollar index retreated after the data, making gold more attractive.

Data showed US manufacturing slumped further in February and the University of Michigan’s surveys of consumers was also weak. Another set of data on Thursday indicated that the annual increase in US inflation in January was the smallest in nearly three years, keeping a June rate cut from the Federal Reserve on the table.

Bart Melek, head of commodity strategies at TD Securities, said gold is seeing some upside as the market is convinced that the Fed will ease its monetary policy by midyear, lowering the opportunity cost of bullion. – Reuters

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