Gold edges up as dollar slips, Fed outlook in focus
GLD•Spot gold rose 0.2% to $4,176.92 an ounce on Friday as the dollar weakened, while traders focused on the Federal Reserve’s rate outlook. Gold was down 0.4% for the week; December U.S. gold futures gained 0.7% to $4,198.10 an ounce.
1. Gold gains as dollar slips
Spot gold rose 0.2% to $4,176.92 per ounce by 1120 GMT, but was down 0.4% for the week. U.S. gold futures for December delivery gained 0.7% to $4,198.10 per ounce. The dollar was headed for its first weekly decline in five weeks, making gold cheaper for holders of other currencies.
2. Fed outlook in focus
Federal Reserve Chair Kevin Warsh voiced optimism about U.S. economic strength but gave no indication of his view on the future rate path. Traders largely expect the Fed to hold rates steady this month and are pricing in a 91% chance of a rate hike in December. U.S. producer prices posted their largest increase in 4-1/2 years last month, following data showing consumer prices accelerated in September.
3. Other metals decline weekly
Silver rose 0.7% to $57.86 per ounce, platinum gained 0.7% to $1,636.98 and palladium increased 0.5% to $1,132.09, though all three metals were headed for weekly losses. Several large Indian mutual funds issued notices suspending bulk subscriptions to gold exchange-traded funds.
