Union files complaint against Orla Mining, alleging violation of worker rights in Mexico
The complaint is only the second of its kind made from Canada using CUSMA’s RRM process since the trade deal came into force in 2020.
Gold pulled back sharply on Friday after setting a new one-year peak in the last session, as the dollar bounced and a Federal Reserve official flagged the need for another interest rate hike.
Spot gold was down 2.1% to $1,995.95 an ounce by 11:50 a.m. EDT, once again falling below $2,000. US gold futures also declined 2.1%, but held above that level at $2,011.30 an ounce.
[Click here for an interactive chart of gold prices]
Meanwhile, the dollar index bounced off a one-year low and Treasury yields rose after a key Fed official warned that the US central bank needs to continue hiking rates to tame inflation.
Christopher Waller, a member of the Fed’s governing board, told the Associated Press on Friday that inflation “is still much too high”, though he did not specify how many more increases he supports.
The CME FedWatch tool shows traders are now pricing in a 82.6% chance of a 25 basis-point hike in May, compared with a 70% chance at the beginning of the week. The likelihood of another rate hike dims the appeal of non-yielding bullion.
The metals market will likely weaken as we go into the “blackout period” ahead of the Fed decision in May with a 25 bps hike expected, said Daniel Pavilonis, senior market strategist at RJO Futures, in a Reuters note.
“So I can see some profit taking here, but we’ll stabilize somewhere around $2,000,” he added.
But analysts said bullion’s outlook remained positive, following the stellar run over the past couple of sessions amid growing recession worries that could prompt the Fed to eventually end its rate-hike cycle.
“I still expect prices to hit record highs and extend gains to $2,100,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
(With files from Reuters)
