Gold prices end in green as US dollar eases

Gold prices edged higher at settlement today, May 15, pushing the US dollar lower as the Federal Reserve assessed the course of monetary policy.

Today, the US dollar slid from a five-week peak after data showed the New York Fed’s Empire State manufacturing index plunged to -31.8 in May, above estimates for a decline to -5 points, marking the largest pullback since April 2020.

Quincy Crosby, chief global strategist at LPL Financial, also sees gold climbing into default, saying a weakening US dollar could drive bullion higher, given that the commodity is priced in dollars.

Elsewhere, Daniel Ghali, commodity strategist at TD Securities, pointed out, “Investors will continue to deploy their capital in gold as the prospect of a rate-cutting cycle continues to firm over the next 12 months.”

At least 77% of market players are still betting Fed policymakers will fix interest rates during the upcoming June monetary policy meeting, while about 60% forecast the move to take place in July. There is also a 44% chance the US central bank would cut rates by 25 basis points during the September meeting.

In terms of trading, gold for June delivery surged 0.10%, or $2.9, to close at $2,022.70 an ounce.

On the other hand, the US dollar index, which gauges the greenback's strength against a basket of six currencies, slumped 0.30% to 102.41 points at 08:35 pm Makkah time.