Gold prices rose again on Friday after hitting a three-week low earlier in the week, after a batch of U.S. inflation reports were seen as not alarming enough to force more immediate action from the Federal Reserve.
- Gold futures for December delivery gained $8.30, or 0.4%, to $1,941 per ounce.
- Silver futures for December SIZ23,
+1.83%gained 46 cents, or 2%, to $23.46 per ounce.
- Platinum futures for October PLV23,
+1.32%gained $14.50, or 1.6%, to $925 per ounce, while palladium futures for December rose by $19.70, or 1.6%, to $1,274 per ounce.
- Copper futures for December HGZ23,
-0.12%were off by 0.1% at $3.817 per pound.
Gold is on track to finish this week around where it started as data on U.S. consumer and producer prices affirmed that inflation continued to re-accelerate in August, but not by a wide enough margin to alarm markets and central bankers.
What’s more, in Europe, the European Central Bank signaled that it has likely finished raising interest rates after delivering another 25-basis-point hike on Thursday to lift its deposit rate to 4%.
After marching to its highest level in six months, the U.S. dollar was taking a pause on Friday, which also contributed to gold’s gains, analysts said.
“The slight buoyancy of gold on Friday has also been assisted by a slight weakening in the strength of the US dollar, the currency which gold has an inversely correlated relationship with as the metal is typically priced in dollars,” said Rupert Rowling, a market analyst at Kinesis Money.
The ICE U.S. Dollar Index DXY, a gauge of the buck’s strength against a basket of rivals, was off by 0.1% at 105.31.