Gold hits one-week high, heads for weekly gain on bargain-hunting
GLD•Gold rose 1.5% to $4,194.36 an ounce and was heading for a weekly gain of about 1.3%, as bargain buying followed a two-month low earlier in the week. Traders weighed the prospect of further U.S. rate hikes, while demand in India slowed as prices rebounded.
1. Gold rebounds
Spot gold rose for a second straight session on Friday, reaching a one-week high after falling to a two-month low on Wednesday. December U.S. gold futures gained 1.4% to settle at $4,216.30.
2. Rates and demand
U.S. 10-year Treasury yields eased from two-decade highs reached Wednesday. Traders priced in a 19% chance of a rate hike in October and an 84% probability of at least one 25-basis-point increase by December. Gold demand in India was sluggish as prices rebounded, while trading in China was subdued during a holiday-shortened period.
3. Other metals rise
Spot silver gained 2.4% to $60.77 an ounce, platinum rose 3.1% to $1,685.64 and palladium added 2.1% to $1,146.39. Platinum and palladium were still headed for weekly losses.
