Gold futures rebounded Friday from sharp losses in the prior session, tacking on more than $20 U.S. an ounce as a weaker U.S. dollar fed a broad rally in commodity markets.
Gold for April delivery rose $20.70, or 1.3%, to $1,663.20 U.S. an ounce on the Comex division of the New York Mercantile Exchange. Prices, which haven’t settled above $1,660 U.S. since Monday, were trading around 0.5% higher for the week.
Weakness in the dollar, which makes dollar-denominated commodities such as gold more attractive for holders of other currencies, contributed to gains as well as to strength across a broad spectrum of commodities Friday. Read about action in oil.
The ICE dollar index, which measures the greenback’s performance against a basket of six major currencies, declined to 79.255 from 79.745 late Thursday.
Silver led the percentage gains among the major metals. May silver futures rose 74 cents, or 2.4%, to $32.08 U.S. per ounce, still trading around 1.6% lower for the week.
On Thursday, gold closed down $7.80 to $1,642.50 U.S. an ounce, a nine-week low, in the wake of weak China manufacturing data that weighed on commodities and global stocks.
That data came on the heels of worries earlier this week that Chinese demand for metals such as iron is waning in the face of a slowdown in growth.
Gold, usually thought as a safe-haven asset, has been pressured recently along with other commodities as it behaves more as a classic commodity. The metal is looking at a loss of less than 1% this week.
Among other metals Friday, copper for May delivery rose six cents, or 1.5%, to $3.82 U.S. a pound. Prices were down about 1.4% week to date.
April platinum rose $20.20, or 1.3%, to $1,632.30 U.S. an ounce, trading around 2.5% lower for the week. The June contract for sister metal palladium rose $12.60, or 1.9%, to $663.65 U.S. an ounce, poised to lose over 5% on the week
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