Gold futures climbed for a third straight session on Friday, poised for a gain on the week as a sharp drop in the U.S. dollar buoyed investment demand for the precious metal.
Gold for April delivery on Comex rose $12.60, or 1.1%, to settle at $1,181.60 U.S. an ounce. Prices, which settled at a two-week high on Thursday, were poised for a weekly gain of around 2.5%, based on the most-active contracts.
May silver tacked on 59.1 cents, or 3.7%, to trade at $16.705 U.S. an ounce, with prices trading around 7.8% higher for the week.
Gold futures have posted increases over the previous two trading sessions. Late Wednesday, the Fed policy statement and Fed Chairwoman Janet Yellen were interpreted as signaling the central bank would raise rates more slowly than market participants had anticipated. Some analysts expected that to cause a pause in the dollar’s rally.
On Friday, the ICE U.S. dollar index fell 1%, and traded roughly 2% lower for the week. A weaker dollar often provides support for dollar-denominated commodities, including gold, as investors seek out alternative investments.
In other Comex trading, April platinum rose $13.20, or 1.2%, to $1,132.80 U.S. an ounce, while June palladium rose $10.50, or 1.4%, to $776.30 U.S. an ounce.
May copper added 7.7 cents, or 2.9%, to $2.737 U.S. a pound.
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