Gold prices rallied on Friday to levels not seen since August as expectations for a further delay in U.S. interest-rate hikes weakened the U.S. dollar, lifting the metal’s investment appeal.
Gold for December delivery jumped $10.10, or 0.9%, to $1,154.40 U.S. an ounce on Comex, setting it on track for its highest settlement since August. For the week, prices were poised for a gain of 1.9%.
Late Thursday, the Federal Open Market Committee released the minutes from the meeting last month in which it had decided to hold rates near zero. Investors interpreted the minutes as further proof that U.S. interest rates may remain on hold for the rest of the year.
Against that backdrop, the U.S. dollar index moved lower Friday, offering support for dollar-denominated prices for metals, including gold.
Gold doesn’t yield interest and competes more easily against assets that do, like Treasurys, when rates are pinned near zero. And, like most commodities, the metal is priced in dollars and becomes cheaper to buy for those using stronger currencies when the greenback softens.
Other metals also traded higher Friday. Zinc rallied on the London Metal Exchange after Glencore PLC said it would cut its annual zinc production by about a third after a collapse in price of the industrial metal.
Back on Comex, December high-grade copper added seven cents, or 3%, to $2.413 U.S. a pound, set for a weekly gain of 3.7%. Silver for the same month put on 7.9 cents, or 0.5%, to $15.85 U.S. an ounce, trading about 3.8% higher on the week.
January platinum climbed $23.70, or 2.5%, to $979.30 U.S. an ounce, up 7.7% for the week, while December palladium gained $5.85, or 0.8%, to $708.95 U.S. an ounce, looking at a weekly rise of 1.6%.
