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Gold Heads for First Weekly Gain Due To FED Raised

Gold:  held its recent advance to around $1,840 an ounce on Friday and was headed for its first weekly gain since mid-April, as continued softness in US economic data amid the Federal Reserve’s aggressive monetary tightening fueled growth concerns.

The Fed has raised its benchmark policy rate by an aggregate of 75 basis points this year, and is on track to increase it again in 50-basis point increments at each of the next two meetings in June and July.

Fed Chair Jerome Powell also stated that the central bank was intent on using its tools to bring down multi-decade high inflation even if it involves moving past broadly understood neutral levels, raising the risk of a recession.

Fears of a US economic slowdown dragged the dollar and US Treasury yields lower, benefitting the safe-haven gold.

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