Gold futures logged their first gain in five sessions on Friday, but still suffered from their worst weekly loss in about a month.
Gold for December delivery gained $11.40, or 1%, to settle at $1,134 U.S. an ounce in on Comex. Prices saw a 2.2% weekly loss—the largest since the week ended July 24.
Thursday’s stronger-than-expected gross-domestic-product report suggests the U.S. economy may be on better footing than the market has feared. Analysts speculate that despite global-market turmoil fueled by China—the world’s second-largest importer of commodities—the Federal Reserve may still find cause to lift interest rates sooner than later.
Higher rates would be a boon for the U.S. dollar but may dim the appeal of dollar-denominated gold for buyers purchasing the asset in other currencies.
Improving U.S. economic data, such as second-quarter U.S. GDP growth raised to 3.7%, is providing support for the greenback, said a number of experts. But some Fed officials haven’t sounded very supportive of a rate increase. Some experts maintain that economic data next week will be what really matter.
On Friday, data on personal-consumption expenditures, a measure of inflation, showed it at its lowest level since March 2011. Gold held on to its gains after the PCE data.
Another event investors are watching is the Jackson Hole, Wyoming summit, where Fed officials are expected to drop clues about the U.S. central bank’s likelihood of hiking rates just weeks ahead of the key two-day meeting of the Federal Open Market Committee starting Sept. 16.
In other metals, September silver gained 11.8 cents, or 0.8%, to $14.535 U.S. an ounce, for a weekly loss of 5%. September copper ended at $2.347 U.S. a pound, climbing 1.3 cents, or 0.5%—up about 1.9% for the week.
October platinum rose $15.70, or 1.6%, to $1,021.70 an ounce, for a weekly decline of 0.5%, while September palladium added $20.95, or 3.7%, to $589.55 U.S. an ounce to lose about 2.4% on the week.
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