By 2 Min Read* Spot gold is up more than 1% this week* Platinum is up 2.8 percent this week* Palladium prices are expected to fall into 2022, according to UBS (Adds comments and updates prices) 16 JULY (Reuters) – Gold prices rose for the fourth week in a row on Friday after the Federal Reserve of the United States allayed market fears of a faster tightening of monetary policy, albeit the safe-haven commodity was pressured by a stronger dollar. As of 0351 GMT, spot gold was unchanged at $1,827.00 per ounce, after hitting a high of $1,833.65 on Thursday, the highest since June 16. Bullion has risen 1.1 percent this week. Gold futures in the United States were unchanged at $1,828.80. “This stronger dollar narrative that we’re starting to see in the markets is going to limit the upside in gold,” SPI Asset Management managing partner Stephen Innes said. Lower real rates, as well as the fact that some market participants believe the Fed will not truly push the boundaries on rate hikes, are helping gold, according to Innes. Lower interest rates reduce the opportunity cost of owning non-yielding gold, which is also seen as a hedge against inflation caused by widespread stimulus. In a hearing before the Senate Financial Committee on Thursday, Fed Chair Jerome Powell faced tough questions about inflation and banking regulation, repeating his commitment of “powerful assistance” to get the US economy through. The dollar was on track to post its highest weekly increase in nearly a month, making gold more expensive for holders of foreign currencies. Palladium, on the other hand, climbed 0.4 percent to $2,740.28 per ounce, but was on course for its first weekly loss in four weeks. “We believe palladium has likely peaked this year and will trade downward through 2022,” UBS analyst Giovanni Staunovo wrote in a note, adding that palladium auto-catalyst demand may suffer as a result of palladium’s substitution for platinum. Platinum fell 0.3 percent to $1,134.54 per ounce on Friday, although it was still up 2.8 percent for the week. Silver increased 0.1 percent to $26.34 per ounce, giving it a weekly gain of 1%. Eileen Soreng contributed reporting from Bengaluru, and Sherry Jacob-Phillips edited the piece./n
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