Gold Market
Gold prices are holding steady and on track for a third consecutive weekly gain, supported by a weaker US dollar and lower Treasury yields. A drop in jobless claims has reinforced expectations that the Federal Reserve will keep interest rates unchanged in September.
Gold edged lower on Thursday as US Treasury yields trimmed earlier losses and the dollar firmed, pulling XAU/USD back to $4,509 from a daily high of $4,540.
Veteran investor Rick Rule says the US dollar could lose 75% of its purchasing power in ten years, making a five-digit gold price plausible. He views gold as wealth insurance.
Gold has broken through the $4,300 resistance level, according to technical analysis in the latest Gold SWOT report. The next major price threshold is now $4,500.
Gold climbed to within striking distance of $4,400 an ounce as weaker US retail sales and consumer sentiment data dragged the dollar lower, making bullion cheaper for overseas buyers.
Gold is quoted in troy ounces, a unit of weight with origins in medieval France, not the same as the ounce used for everyday goods.
Gold prices advanced towards a weekly gain on Friday, supported by a weakening US dollar and steady inflation data that cooled expectations of further Fed rate hikes.