WASHINGTON (dpa-AFX) - Gold prices drifted lower on Friday, pushing the most active gold futures down to their first weekly loss in four, amid fading prospects of an imminent rate cut by the Federal Reserve following hotter than expected inflation data.
Extending gains from the previous session, the dollar climbed higher today on bets the Federal Reserve will take a bit longer to consider reducing interest rates.
The dollar index climbed to 103.46, gaining about 0.1%.
Gold futures for April ended lower by $6.00 at $2,161.50 an ounce. Gold futures shed about 1% in the week.
Silver futures for May ended up by $0.321 at $25.256 an ounce, while Copper futures for May settled at $4.1245 per pound, gaining $0.0790.
The U.S. dollar marched higher and Treasury yields spiked after Thursday's data showed the U.S. producer price inflation rose 0.6 percent in February from last month, outpacing the modest 0.3 percent gain forecasted by economists.
The Fed is expected to keep rates unchanged at the March 19-20 meeting but the new 'dot plot' would be closely watched by investors for additional clues on the rate trajectory.
According to the CME FedWatch Tool, the probability of the Fed leaving the policy rate unchanged at June meeting climbed from 25% to 40% after the CPI data released earlier this week and Thursday's PPI data.
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