Gold futures rose Friday following a string of losses, but prices were still poised for their worst weekly decline in a month.
Gold for December delivery rose $7.70, or 0.6%, to $1,283.20 U.S. an ounce.
The move came after futures on Thursday hit their lowest settlement since June 18, as a weekly drop in claims for U.S. unemployment benefits spurred concerns the Federal Reserve will consider the economy ready to handle an interest-rate increase in the near future.
Investors are watching for comments about the labour market from Fed Chairwoman Janet Yellen, who will speak at an annual gathering of the world’s central bankers in Jackson Hole, Wyo.
Gold futures have declined in the previous five sessions, in part as a hawkish tone at the Fed’s meeting in late July resulted in dollar strengthening. A stronger greenback makes dollar-denominated assets such as gold more expensive for holders of other currencies.
As well, tighter monetary policy tends to be negative for gold, which has benefited in recent years from unconventional monetary policy measures undertaken by major central banks.
Gold prices were moving toward a 1.9% fall for the week, which would be the largest decline since a 2.1% pullback for the week ending July 18, according to FactSet data.
Elsewhere in metals trading, October platinum rose $4.80, or 0.3%, to $1,424.10 U.S. an ounce, while September palladium picked up $3.10, or 0.4%, to $883 U.S. an ounce.
High-grade copper for September delivery gained two cents, or 0.7%, to $3.19 U.S. a pound. September silver advanced eight cents, or 0.4%, to $19.49 U.S. an ounce.
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