Gold adds over 1% on easing oil prices and softer dollar
GLD•Spot gold rose 1.4% to $4,189.99 an ounce on Friday, with easing oil prices and a softer U.S. dollar supporting bullion. Gold was heading for a weekly gain as markets weighed the likelihood of further Federal Reserve rate hikes.
1. Gold advances
Spot gold rose 1.4% to $4,189.99 an ounce by 0842 GMT, while U.S. gold futures for December delivery added 1.4% to $4,215.30. Silver gained 1.7% to $60.36, platinum climbed 3.4% to $1,690.49 and palladium rose 3.7% to $1,162.18.
2. Rates and oil
Oil prices fell after Donald Trump said the United States would not attack Iran before next month’s midterm elections. Analyst Nikos Tzabouras said the combination of lower oil prices and a softer dollar strengthened the case for the Fed to hold rates this month, but added that gold remained vulnerable to renewed declines. Traders priced in a 19% chance of an October rate hike and an 84% probability of at least one 25-basis-point increase by December.
