Gold loses momentum on ebbing rate cut speculation
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Gold prices rose on Friday as the dollar slipped, but were heading for their worst week in five and a half months due to hopes of U.S. central bank interest rate cuts affecting Western investors' interest. Spot gold rose 0.2% to $2,332.77 per ounce as of 1:54 p.m. ET (1754 GMT) as the U.S. dollar index slipped 0.4%. U.S. gold futures settled 0.1% lower to $2,334.50. Bullion hit a record high of $2,449.89 on Monday, but has shed more than $100 since then and is on track for a 3% drop this week, its worst weekly dip since early December. Minutes from the Fed's last meeting published this week showed the central bank's path to 2% inflation could take longer than expected. Traders' bets signalled growing doubts that the Fed will cut rates more than once in 2024, currently pricing in about a 63% chance of a rate cut by November according to the CME FedWatch Tool. Higher interest rates make non-yielding gold a less appealing investment. Despite uncertainty around U.S. rate outlook, gold prices managed to gain 13% so far this year, largely on the back of strong geopolitical uncertainties, analysts have noted.

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https://m.economictimes.com/markets/commodities/news/gold-loses-momentum-on-ebbing-rate-cut-speculation/articleshow/110413109.cms