Gold settles higher as US dollar struggles

Gold prices ticked up at settlement today, May 8, as investors continued to assess the Federal Reserve’s future monetary policy path.

The US dollar is still under pressure, especially after the Fed’s latest quarter-point interest rate hike at the May 2-3 meeting. Market expectations suggest the decision represented the peak of the US central bank’s monetary tightening cycle.

Later today, the Fed will release its quarterly Senior Loan Officer Opinion Survey, which will provide insights into how the collapse of several regional banks and sharp interest rate increases have affected willingness to lend elsewhere.

The last quarterly report, which was out in February, showed lending standards had risen to 44.8%, the highest level since July 2020, even before the recent bank fallouts.

In terms of trading, bullion for June delivery gained 0.40%, or $8.40, to close at $2,033.20 an ounce.

On the other hand, the US dollar index, which gauges the greenback's strength against a basket of six currencies, settled at 101.21 points at 08:31 pm Makkah time.