Gold bounced back from early losses on Friday to hit its highest price in weeks. Underpinning the move by the yellow precious metal, which has been battered for weeks, was a strengthening dollar and hope of a cut in oil production.
Gold for December delivery rallied $24.10, or 2.1%, to settle at $1,185.60 U.S. an ounce, its highest since it closed at $1,198.60 U.S. on Oct. 30. The move higher on Friday still capped an otherwise tough week for gold, which still will leave the metal down 0.4% for the week.
December silver soared 69 cents, or 4.4%, to $16.31 U.S. an ounce.
Crude oil futures rose on the back of expectations that OPEC may reduce production in a bid to prop up oil prices. On the New York Mercantile Exchange, light, sweet crude futures for delivery in December rose 65 cents, or 0.9%, to trade at $74.86 U.S. a barrel.
A stronger U.S. dollar against the Japanese yen and the euro also revived investors’ interest in gold, which underpins the commodity.
Gold may continue to enjoy a respite from selling pressure in the short term as the market awaits OPEC’s decision centered on possibly cutting production, when it meets in Vienna in two weeks, according to at least one expert. But there are upside limits to how far gold can rebound with initial resistance expected around $1,200 U.S.
In other metals action, January platinum added $14.10, or 1.2%, to $1,213.10 U.S. an ounce, while December palladium rose 50 cents to $771.35 U.S. an ounce. High-grade copper for December delivery gained five cents, or 1.7%, to $3.05 U.S. a pound.
