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Gold prices posted a weekly gain after back-to-back weekly losses, helped by a weaker dollar and safe-haven demand stemming from turmoil in the Middle East, even as U.S. Federal Reserve officials dented hopes of early rate cuts. rates this year.
THE The dollar index posted its first weekly decline in nearly two months, amid a pause in a recent rally based on expectations that the Fed would delay rate cuts.
The benchmark 10-year US Treasury yield also fell on the week, losing 4bps to 4.26%; lower interest rates increase the attractiveness of holding non-yielding bullion.
Fed Governor Christopher Waller said Thursday he was in “no rush” to cut interest rates, bolstering sentiment against rate cuts before June.
Copper and gold would likely see the biggest immediate price increases in the commodity sector due to potential Fed rate cuts, analysts at Goldman Sachs said this week.
Front-month Comex gold (XAUUSD:CUR) for February delivery ended Friday +0.9% to $2,038.60 an ounce, up 1.3% on a weekly basis, and early February silver (XAGUSD:CUR) also rose +0.9% Friday at $22.969/oz, up 2% this week.
ETFs: (NYSEARCA:GLD), (GDX), (GDXJ), (NYSEARCA: JUR), (NUGT), (PHYS), (GLDM), (AAAU), (SCHOOL), (BAR), (OUNZ), (SLV), (PSLV), (SLVP), (SIVR), (SIL), (SILJ)
A Reuters report this week says a surge in interest in bitcoin ETFs is causing some investors to trade holdings in gold-backed ETFs, as spot bitcoin ETFs could offer investors seeking to hedge against inflation an alternative to ‘gold.
Since U.S. regulators gave the green light to ETFs that track bitcoin prices on Jan. 10, two of the largest new spot bitcoin ETFs — iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC) — they have amassed $5.45 billion and $4.13 billion in assets. as of February 14 respectively, LSEG Lipper data shows.
According to the report, the largest gold-backed ETF, New York’s SPDR Gold Trust (GLD), saw outflows of nearly $769 million in the same period, while the iShares Gold Trust (IAU) saw outflows for 284.6 million dollars.