· Gold prices rose to a six-week high on Friday after weaker than expected U.S. inflation dampened expectations that the U.S. Federal Reserve will aggressively raise interest rates and North Korea fired a ballistic missile, triggering safe-haven buying.
· Spot gold was up 0.8 percent at $1,268.84 an ounce by 1:50 p.m. EDT (1750 GMT), after touching $1,270.38, the highest since June 14. It was on track to rise for a third week in a row.
· U.S. gold futures for August delivery settled up 0.7 percent at $1,268.40.
· Silver was up 1% at USD16.69 an ounce, on track for a third weekly gain.
· “Gold is buoyant; gold is resilient,” said Richard Baker, editor of the Eureka Miner Report. He suggested Friday’s report on U.S. gross domestic product may mean a more dovish Federal Reserve stance on monetary policy.
· “This is bullish for gold, allied by White House turmoil and uncertainty created by the early-morning collapse of the ACA [Affordable Care Act] repeal,” Baker said. “The Russian ouster of hundreds of U.S. staff in response to tighter sanctions adds a new geopolitical dimension. The combination of these drivers should bring the yellow metal to the $1,280 level next week.”
Reference: Reuters, Kitco
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