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Gold Up, Set for Second Weekly Gain as Dollar Falls from 20-Year High

Published 05/26/2022, 11:30 PM
Updated 05/26/2022, 11:33 PM
© Reuters.
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By Gina Lee

Investing.com – Gold was up on Friday morning in Asia and was set for a second weekly gain after the dollar retreated from 20-year highs.

Gold futures were up 0.28% to $1,852.70 by 11:30 PM ET (3:30 AM GMT) and was up 0.2% in the week to date.

The dollar, which normally moves inversely to gold, was down on Friday, continued a fall in the previous session, and was set for a second consecutive weekly decline.

Gold fell on Thursday, with the U.S. Federal Reserve's aggressive monetary policy tightening plan dimming bullion’s appeal and a rebound in equities also adding pressure.

The minutes from the Fed’s last meeting released earlier in the week, showed that it favored additional 50 basis point rate hikes at its June and July 2022 meetings, as per expectations.

U.S. Treasury yields were subdued, with the benchmark 10-year note hitting a fresh six-week low. Inflation fears continue to dissipate even as data and corporate announcements point to slower economic growth.

In Asia-Pacific, data released earlier in the day showed that the Tokyo core consumer price index (CPI) grew 1.9% year-on-year in May 2022, the Tokyo CPI grew 2.4% year-on-year, and the CPI Tokyo Ex Food and Energy index grew 0.1% month-on-month.

In other precious metals, silver edged down 0.2% and has gained about 0.9% in the week to date. Platinum was nearly flat at $950.28 and fell 0.5% this week. Palladium edged down 0.2% and was set for a weekly gain of about 2.2%, the most since early April 2022.

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