Gold futures settled at a more than six-week high on Friday to score their biggest weekly gain since January as a slump in equities and a drop in the U.S. dollar buoyed the metal’s investment appeal.
Gold futures for December delivery rose $6.40, or 0.6%, to settle at $1,159.60 U.S. an ounce on Comex. Tracking the most-active contracts, prices climbed 4.2% for the week, their largest weekly gain since the week ended Jan. 16. Month to date, they are up 5.7%.
The yellow metal settled at its highest level since July 8 as U.S. stocks sank and the U.S. dollar tumbled.
Investors have been weighing the prospects of a September Fed interest-rate hike. Higher U.S. interest rates would likely strengthen the dollar and weigh on gold, as it is priced in the currency, plus gold doesn’t provide a yield like financial assets.
On Friday, gold found support after data showed the pace of growth among U.S. manufacturers tapered to the slowest rate since October 2013. Downbeat economic data could lead the Fed to stand pat on interest rates next month.
Meanwhile, an early gauge of Chinese factory activity released Friday showed a fall to its lowest level in more than six years, adding to worries about China’s economic health
On Comex Friday, other metals ended lower. September silver shed 21.6 cents, or 1.4%, to $15.301 U.S. an ounce after tacking on 2.2% a day earlier. It saw a weekly gain of 0.6%.
September high-grade copper ended at $2.304 U.S. a pound, down 1.6 cents, or 0.7%, for a weekly loss of 2%.
October platinum fell $7.80, or 0.8%, to $1,027.10 U.S. an ounce, up 3.3% on the week, while September palladium shed $18.80, or 3%, to $604.45 U.S. an ounce, losing 2.1% for the week.
