Gold futures on the COMEX division of the New York Mercantile Exchange saw a rise on Friday, driven by a decrease in the U.S. dollar and Treasury yields. The most active gold contract for April delivery experienced a jump of 2.00 percent, closing at 2,095.70 dollars per ounce, an increase of 41.00 U.S. dollars.
Richmond Federal Reserve President Thomas Barkin, in an interview with CNBC, noted that inflation pressures continue to exist in the U.S. economy. He stated that it is premature to predict when the Federal Reserve will be able to begin reducing its benchmark interest rate. Barkin emphasized the importance of inflation normalization as a key factor in deciding on interest rate adjustments.
Fed Governor Chris Waller, speaking at a monetary policy conference, discussed the purpose of balance sheet plans in ensuring appropriate liquidity levels. He clarified that these plans do not indicate any implications for interest rate policy, which is focused on macroeconomic influence and achieving the dual mandate.
Economic data released on Friday showed a mixed picture. The seasonally adjusted S&P Global U.S. Manufacturing Purchasing Managers’ Index (PMI) increased to 52.2 in February from 50.7 in January, surpassing the previous flash estimate of 51.5. On the other hand, the Institute for Supply Management’s Manufacturing PMI dropped to 47.8 percent in February, a decline of 1.3 percentage points from January’s 49.1 percent.
The Consumer Sentiment Index from the University of Michigan (UM) Surveys of Consumers declined to 76.9 in the February 2024 survey, down from 79.0 in January but higher than 66.9 from the previous year. The upcoming release of the U.S. February jobs report next Friday will provide further insights into the economic landscape.
In the commodities market, silver for May delivery surged by 2.09 percent, or 47.90 cents, closing at 23.364 dollars per ounce. Platinum for April delivery also experienced a modest increase, rising by 0.45 percent, or 4.00 dollars, to reach 888.00 dollars per ounce.
