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Key Takeaways
- The spot price of gold rose Friday as Atlanta Federal Reserve Bank President Raphael Bostic suggested policymakers remain on track to reduce borrowing costs this year.
- Bostic said in an interview with Reuters that policymakers could still reduce rates this year, although the timing is still unclear.
- The VanEck Gold Miners ETF traded at its highest level in more than a year.
The spot gold price was 0.8% higher at $2,364.27 per ounce as of 12:40 p.m. ET Friday, continuing gains following Thursday’s report showing higher-than-expected weekly jobless claims for the latest week ended May 4. That news raised optimism the labor market could be slowing enough to allow the Federal Reserve to cut interest rates, which would be bullish for gold.
Atlanta Fed’s Bostic Says Fed Rate Cut Still on Track
Atlanta Federal Reserve Bank President Raphael Bostic told Reuters policymakers remain on track to reduce borrowing costs this year. Bostic noted that in talking with business leaders in his district, most feel their pricing power is in decline following the post-pandemic boom that sent inflation soaring. However, Bostic added that it remains unclear when exactly the first rate reduction would take place.
VanEck Gold Miners ETF Trades at Highest Level in More Than a Year
The gain in gold has helped boost shares of many of the biggest gold mining companies. It also sent the VanEck Gold Miners ETF to its highest level in more than a year. Gains among its top 10 holdings were led by Gold Fields (GFI), American depositary receipts (ADRs) of which were up close to 4% intraday Friday and have risen over 18% since the start of the year.
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