Gold gains on softer dollar but heads for weekly fall
GLD•Spot gold rose 0.2% to $4,177.82 per ounce but was down 0.5% for the week. U.S. producer prices surged 1.3% in September, while traders priced in a 28% chance of a rate hike this month.
1. Gold edges higher
Gold rose on Friday as the dollar weakened, but remained on track for a small weekly decline. Spot gold was up 0.2% at $4,177.82 per ounce and down 0.5% for the week; U.S. gold futures gained 0.7% to $4,199.10.
2. Inflation and rate outlook
U.S. producer prices increased 1.3% in September, the largest rise in 4-1/2 years, and traders priced in a 28% probability of a rate hike later this month and an 89% chance of an increase in December. Higher interest rates reduce the appeal of gold, which does not yield interest.
3. Other metals
Silver rose 0.7% to $57.81 per ounce, platinum gained 1.1% to $1,642.75 and palladium climbed 1.5%; all three were headed for weekly losses.
