Gold prices remain unchanged in early trade

5 May 2023 , 08:58 AM

Although gold prices were unchanged on Friday, they were on track to post their biggest weekly gain in nearly two months as banking concerns and expectations for a pause in the U.S. central bank’s interest rate hike cycle increased demand for the safe-haven asset.

Spot gold was little changed at $2,048.81 per ounce, up roughly 3% for the week. American gold futures increased by 0.1% to $2,057.10.

On Wednesday, the U.S. Federal Reserve hinted that interest rate rises might be on hold.

After announcing a liquidity increase in March, PacWest Bancorp is now considering strategic options, such as a possible sale or capital raising, as its share price continues to deteriorate.

Demand for the non-yielding asset is boosted by low interest rates and economic uncertainty.

The dollar index was expected to fall for the week, making gold more appealing to purchasers from outside.

The non-farm payrolls (NFP) report from the US Labour Department, which is scheduled at 12:30 GMT, will be closely watched by investors.

On Thursday, the European Central Bank delayed the rate of its rate increases but hinted at further tightening.

Exorbitant prices have hurt the market for bullion in major Asian retail hubs.

Spot silver prices decreased by 0.3% to $26.00 per ounce, while platinum prices increased by 0.3% to $1,042.15 and palladium prices grew by 0.6% to $1,456.73.

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