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As the dollar plummets due to Fed wagers to stall, gold and copper prices rise

09 Jun,2023
As the dollar plummets due to Fed wagers to stall, gold and copper prices rise

The dollar fell on Friday on projections that Fed will stop raising interest rates next week, which supported the gold and broader metal markets, which were poised for a second week of gains.

Spot gold muted at $1,965.04 per ounce, meanwhile gold futures added 0.1% to $1,979.75 per ounce.

On Thursday, the yellow metal had its greatest intraday rise in two weeks and reached the top of a trading range that has been present since mid-May as bets on a Fed pause increased in response to an increase in weekly U.S. unemployment claims.

Following the release of the report, the dollar experienced its worst decline since late March, and Treasury rates also decreased, which helped metal markets that price their products in dollars.

When the Fed meets the next week, it may decide to suspend its cycle of rate increases due to weakness in the labor market and some easing in inflation. However, recent indications of personal consumption and nonfarm payrolls exceeded forecasts, which has raised doubt regarding the central bank's future course of action.

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