Gold prices retake $2,000 after weak retail sales, weekly losses still on tap
Investing.com-- Gold prices moved little in Asian trade on Friday after retaking a key level as weak U.S. retail sales data spurred some doubts over when the Federal Reserve will begin cutting interest rates.
Bullion prices rose back above the $2,000 an ounce level on Thursday after breaking well below the level earlier in the week. Some safe haven demand- following data showing recessions in Japan and the UK- also aided gold prices.
But despite seeing some relief, the yellow metal was still set for steep weekly losses as traders largely scaled back expectations for early rate cuts, especially following hotter-than-expected consumer price index inflation data earlier this week.
Spot gold steadied at $2,003.86 an ounce, while gold futures expiring in April steadied at $2,015.55 an ounce by 00:14 ET (05:14 GMT). Both instruments were set to lose 1.1% this week- their worst week since early-December.
Even after Thursday’s retail sales reading, Fed officials still warned against betting on early rate cuts. Atlanta Fed President Raphael Bostic said that while the central bank had made headway towards lowering inflation, he was still not ready to call for rate cuts yet.
Bostic also said that inflation will take longer to decline. His comments came just ahead of producer price index inflation data, which is due later on Friday.
San Francisco Fed President Mary Daly is also set to speak later in the day.
Fed officials have repeatedly warned that the central bank is in no hurry to raise interest rates, given that the U.S. economy, inflation and the labor market are all still running strong.
Such a scenario bodes poorly for gold prices, given that higher rates push up the opportunity cost of investing in the yellow metal.
Othe
Read more on investing.com
