Gold Rises, But Heads For Worst Week In Five As Fed Continues Hawkish Tone From Investing.com
Written by Gina Lee
Investing.com – Gold rose Friday morning in Asia, poised for its worst week in five months on growing bets that the US Federal Reserve will accelerate asset cuts and raise interest rates faster than expected to stem rising inflation.
It rose 0.76% to $1,797.80 by 11:37 PM ET (4:37 AM GMT). The yellow metal fell more than 2.8% during the week and is heading for its worst week since June 18, 2021.
Goldman Sachs analysts said in a note Thursday that the Fed is likely to double the pace of reducing its monthly bond purchases from January 2021 to $30 billion, and to finish its asset-shortening scheme by mid-March 2022.
across the Atlantic, . The central bank is also under pressure from bankers to lend more of its stock of German government bonds, a move that would avoid market pressures but nullify some of EBC’s stimulus efforts.
Cases of COVID-19 are on the rise on the continent, with Germany considering reimposing a lockdown after neighboring Austria went into full lockdown earlier in the week.
The newly discovered B.1.1.529 variant of COVID-19, which was detected in South Africa, is also on investors’ radars as Hong Kong has already confirmed two cases.
Elsewhere in the Asia Pacific region, Japan grew 0.3% y/y, while posting 0% m/m growth in November.
In , it grew better than expected 4.9% month over month in October.
China’s net gold imports through Hong Kong jumped to their highest since June 2018 in October, as buyers hoarded the safe-haven metal to ease inflation.
In other precious metals, silver fell 0.1 percent, platinum 0.6 percent and palladium 0.4 percent.
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