· Spot gold had increased 1.8 percent to $1,206.14 an ounce by 1:43 p.m. EDT (1743 GMT), heading for a 1.9 percent weekly gain. U.S. gold futures for December delivery settled up $19.30, or 1.6 percent, at $1,213.30per ounce.
· Gold prices rose on Friday as the dollar came under pressure from clues about the direction of U.S. monetary policy from Federal Reserve Chairman Jerome Powell, which market watchers interpreted as dovish.
· The greenback weakened as Powell, speaking in Jackson Hole, Wyoming, said a gradual approach to raising rates remained appropriate to protect the U.S. economy and keep job growth as strong as possible with inflation under control.
· “It sounds like the Fed is starting to lean a little bit dovish and that is taking the wind out of the U.S. dollar’s sail now,” said Shree Kargutkar, portfolio manager at Sprott Asset Management.
· U.S. political uncertainty, heightened by the legal woes of two of U.S. President Donald Trump’s former advisers this week, is keeping the dollar under pressure despite tighter U.S. monetary policy, analysts say.
· A Reuters survey published on Thursday showed analysts expecting U.S. rates to rise twice more this year and twice next year. The Fed next meets over Sept. 25-26.
· Higher rates raise the opportunity cost of holding gold, which can be costly to store and insure.
· “Investor appetite for gold has been in the doldrums in recent months. Rate hikes, low inflation, rising equity markets and a strong dollar have significantly diminished the appeal of gold,” ANZ analysts said in a note.
· Spot silver was up 2 percent at $14.76 an ounce, barely changed from last week’s close. Platinum gained 1.9 percent at $789.50, closing the week nearly 1 percent higher.
· Palladium rose 1.9 percent at $932.99 per ounce, earlier hitting $939.25, its highest since July 26. It was more than 2 percent higher than last week’s close.
Reference: Reuters
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