Gold ticks up on softer dollar but heads for weekly fall
GLD•Spot gold rose 0.2% to $4,179.19 an ounce on Friday but was down 0.4% for the week. US producer prices surged 1.3% in September, while traders priced in a 13% chance of a Fed rate hike this month.
1. Gold edges higher
Spot gold rose 0.2% to $4,179.19 per ounce by 0633 GMT, while December US gold futures gained 0.7% to $4,200.50. Spot gold was down 0.4% so far for the week. The dollar was heading for its first weekly decline in five weeks, making bullion cheaper for buyers using other currencies.
2. Inflation and rates
US producer prices rose 1.3% in September, their biggest increase in 4-1/2 years, as costs for goods and services increased. Traders priced in a 13% probability of a rate hike later this month and an 89% chance of an increase in December. Fed Chairman Kevin Warsh voiced optimism about US economic strength, while Chicago Fed President Austan Goolsbee called this week's stronger-than-expected inflation data discouraging.
3. Other precious metals
Analyst Kelvin Wong said gold had been trading in a range between $4,075 and $4,221. Spot silver, platinum and palladium rose on Friday, but all three were headed for weekly losses. Several large Indian mutual funds suspended bulk subscriptions to gold exchange-traded funds.
