WASHINGTON (dpa-AFX) - Gold prices climbed higher on Friday amid bets the Federal Reserve will cut interest rates in September, after data showed a bigger than expected increase in U.S. jobless claims last week.
The dollar index, which dropped to 105.14 around mid morning, swiftly rebounded to 105.40 before paring some gains. The index was last seen at 105.31, up marginally from the previous close.
Gold futures for May ended higher by $35.20 or about 1.51% at $2,367.30 an ounce. Gold's gain today was the biggest single session gain in dollar as well as percentage terms in more than a month.
Gold futures gained nearly 3% in the week.
Silver futures for May ended higher by $0.143 or about 0.51% at $28.275 an ounce. Silver futures gained nearly 7% in the week.
Copper futures climbed to around $4.6600 per pound, gaining $0.0750 or about 1.6%.
There is renewed optimism for rate cuts after Sweden's central bank lowered its key interest rate for the first time in more than eight years and Bank of England (BoE) Governor Andrew Bailey hinted at potential future rate cuts.
U.S. consumer and producer price inflation data due next week are now pivotal for the Federal Reserve's higher-for-longer rate strategy.
Federal-funds futures currently show traders expect the Fed to start lowering its benchmark interest rate in November though there remains a chance of a cut in September.
In economic news today, a report released by the University of Michigan showed a substantial deterioration in U.S. consumer sentiment in the month of May.
The University of Michigan said its consumer sentiment index plunged to 67.4 in May from 77.2 in April. Economists had expected the index to edge down to 76.0.
With the much steeper than expected drop, the consumer sentiment index tumbled to its lowest level since hitting 61.3 last November.
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