Commodity News
HeadLine : Gold eases from one-week high as dollar rebound dims appeal
Date : Oct 1 2021
Gold prices eased on Friday after rallying to a one-week high above the key $1,750 level in the previous session, as the dollar rebounded and made the metal expensive for holders of other currencies.Spot gold fell 0.1% to $1,754.64 per ounce, after rising nearly 1.8% on Thursday as the dollar index slipped. The dollar recouped most of those losses on Friday and began the final quarter of 2021 at close to its highest level of the year. U.S. gold futures dropped 0.1% to $1,755.90. Chicago Federal Reserve Bank President Charles Evans said on Thursday supply shocks that are pushing up on prices now will ease next year, and low interest rates will still be needed to bring U.S. inflation back durably to 2%. Gold is traditionally seen as an inflation hedge, although reduced central bank stimulus and interest rate hikes tend to push government bond yields up, in turn translating into a higher opportunity cost for gold that pays no interest. Data on Thursday showed an unexpected rise in weekly U.S. jobless claims to a seasonally adjusted 362,000 for the week ended Sept. 25. Economists in a Reuters poll had forecast 335,000 applications. 

Source: Reuters
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