Gold edges up as dollar slips, Fed outlook in focus
GLD•Spot gold rose 0.3% to $4,184.34 an ounce on Friday as the dollar weakened, while traders focused on the Federal Reserve’s rate outlook. Gold was down 0.2% for the week, and December U.S. gold futures gained 0.9% to $4,205.70 an ounce.
1. Dollar supports gold
Spot gold rose 0.3% to $4,184.34 per ounce by 0824 GMT, while December U.S. gold futures gained 0.9% to $4,205.70. The dollar was headed for its first weekly decline in five weeks, making bullion cheaper for holders of other currencies; spot gold was down 0.2% for the week.
2. Rate outlook in focus
Federal Reserve Chair Kevin Warsh voiced optimism about U.S. economic strength but offered no view on whether further rate hikes would be needed or when. Traders largely expected the central bank to hold rates this month, while pricing in a 91% chance of a December hike. U.S. producer prices recorded their largest increase in 4-1/2 years last month, following a September rise in consumer prices.
3. Other metals fall weekly
Analysts at ANZ said a retreat in yields and the dollar would pave the way for gold to resume its rise above $5,000 an ounce in 2027. Several large Indian mutual funds suspended bulk subscriptions to gold ETFs. Silver, platinum and palladium rose on Friday but were headed for weekly losses.
