JAKARTA - Gold prices rose slightly at the end of trading Friday, June 16. This slight increase extends for three consecutive days as investors digest the hawkish Federal Reserve's prospects for interest rates, offsetting support from the overall dollar drop this week.
Citing Antara, the most active gold contract for August delivery in the Comex New York Exchange division, slightly rose 0.50 US dollars or 0.03 percent to close at 1,971.20 US dollars per ounce, after touching the highest level of the session at 1,980.40 US dollars and the lowest at 1,965.40 US dollars.
Gold futures rose 1.80 US dollars or 0.09 percent to 1,970.70 US dollars on Thursday (15/6/2023), after lifting 10.30 US dollars or 0.53 percent to 1,968.90 US dollars on Wednesday (14/6/2023), and dropping 11.10 US dollars or 0.56 percent to 1,958.60 US dollars on Tuesday (13/6/2023).
Gold fell 0.3 percent this week.
"It's hard for gold as you have ever-increasing stocks and Fed talks more hawkish," said Edward Moya, senior market analyst at OANDA.
"It appears the market believes that the Fed is nearing completion with a tightening as everyone goes into stocks... which dampens demand for safe shelters."
US central bank officials issued a hawkish tone in their first comments since their meeting this week, as a Fed report said inflation in the main part of the service industry was "mainly high and had not shown any signs of easing".
Speaking at a Friday (16/6/2023) conference in Oslo, Norway, Federal Reserve Governor Christopher Waller said that financial pressure on banking factors was a factor that the Fed would oversee in determining the right monetary policy stance in the future.
"Inflation is immobile and it will require, perhaps, some more tightening to try to lower it," added Waller.
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Speaking on Friday (16/6/2023) in Ocean City, Maryland, Federal Reserve wasted president Tom Barkin said he was comfortable with further interest rates if decelerating demand did not return inflation to the target of 2.0 percent of the Federal Reserve quickly enough.
He warned that stopping interest rates too early could lead to higher inflation in the future.
Early reading of the University of Michigan's consumer sentiment index released Friday (16/6/2023) rose to 63.9 in early June from 59.2 in May. Economists estimate the indicators are at 60.2.
Another precious metal, silver for July delivery rose 17.90 cents, or 0.75 percent, to close at 24.126 dollars per ounce. Platinum for July delivery slipped 4.60 dollars, or 0.46 percent, to settle at $987.30 per ounce.
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