Gold prices pushed higher Friday, moving the metal out of negative territory for the week ahead of a weekend that could yield a decision on whether the U.S. government shuts down next week.
Comments from a Federal Reserve official that suggested a bond-buying taper could be pushed out to next year spurred the precious metal upward, analysts said.
Gold for December delivery rose $13.80, or 1%, to $1,337.90 U.S. an ounce on the Comex division of the New York Mercantile Exchange. Gold closed down 0.9% on Thursday after a mix of economic data releases, some showing the U.S. economy moving toward recovery.
For the week, gold futures traded around 0.4% higher.
The ICE dollar index, which charts the dollar against a basket of six major currencies, showed the U.S. currency sliding south on Friday, last trading around 80.196 from 80.535 late Thursday.
Gold held gains amid data that showed rising consumer spending and speeches from some Federal Reserve officials. The threat of a government shutdown had some investors seeking safety in gold. The 2014 fiscal year starts on Tuesday, Oct. 1, and politicians remain at loggerheads over passing a budget, with this weekend expected to see some crucial scrambling in Washington.
Bank of America Merrill Lynch became the latest investment bank to cut its outlook for gold, dropping its 2014 forecast by 17.2% to $1,294 U.S. an ounce.
Silver took gold’s lead to trade higher as well, with the December contract up seven cents, or 0.3%, to $21.84 U.S. an ounce, setting up for a 0.4% weekly decline.
Economic data released Friday showed that a gauge of sentiment among consumers was at its weakest since April. The final September reading for the University of Michigan/Thomson Reuters consumer-sentiment index fell to 77.5 from 82.1.
But consumer spending in August rose a seasonally adjusted 0.3%, marking the third-fastest increase of the year. Persona income climbed 0.4%.
On Comex Friday, January platinum rose $8.20, or 0.6%, to $1,422.90 U.S. an ounce after a nearly $18 drop on Thursday. The contract traded down 0.9% from a week ago. December palladium rose $1.25, or 0.2%, to $724.70 U.S. an ounce, up around 0.4% for the week.
Copper for December delivery rose almost two cents, or 0.5%, to $3.32 U.S. a pound, ready to end the week roughly 0.1% higher.
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