Gold trades in a narrow range, Fed interest hike halt reinforces ‎expectations

Gold prices moved in a narrow range today, Friday, after a volatile week so far, as the rise in the dollar offset the support that the yellow metal received from falling US bond yields, but bets on a temporary halt to raising US interest rates reinforced expectations about non-yielding bullion. ,

There was little change in spot gold, to record $1996.19 an ounce by 1202 GMT, moving in a range of approximately $20. US gold futures rose 0.1 percent to $1,997.50

According to Reuters, prices rose in the past two sessions after the Federal Reserve raised interest rates by a quarter of a percentage point, as expected, but hinted that it was about to pause the increases.

Low interest rates increase the attractiveness of gold

Craig Erlam, chief market analyst at OANDA, said that the dollar’s rise is dissipating the support that gold receives from lower bond yields, but “economic concerns will lead to lower expectations about interest rates, which may lead to strengthening gold prices even more.”

Ten-year US Treasury yields fell for the third consecutive session, while the dollar index rose 0.7 percent.

With regard to other precious metals, silver rose 0.4 percent to $ 23.22 an ounce, and is heading towards achieving gains for the second week in a row.

Platinum fell 1.9 percent to $965.94, and palladium fell 1.8 percent to $1,404.45.