Gold futures rose Friday, buoyed by a weaker U.S. dollar and bargain hunting, but remained on track for the biggest monthly drop since the yellow metal’s June bloodbath.
Gold for February delivery, the most active contract, gained $14.90 U.S. an ounce, or 1.2%, to trade at 1,252.60 U.S. on the New York Mercantile Exchange.
Gold futures are on track for a 6.5% November decline, according to FactSet, the largest monthly drop since a 12.5% plunge in June. Since the beginning of the year, gold is down more than 25%.
March silver futures advanced 38 cents, or 2%, to $20.07 U.S. an ounce, but are on track for a monthly fall of nearly 10%, also the largest since June.
Gold futures peaked above $1,900 U.S. an ounce in September 2011. Gold and other precious metals were boosted in part on fears the aggressive actions would spark a rise in inflation while debasing major paper currencies. Instead, inflation remains low, with central bankers more preoccupied by disinflation and fears of outright deflation.
Silver futures have dropped more than 8% since the beginning of the month and are down more than 34% for year to date.
Meanwhile, the ICE dollar index lost 0.2% to trade at 80.562 U.S. on Friday. A weaker dollar can lift commodities priced in the currency.
In other metals trading, January platinum rose $16.30 U.S. an ounce, or 1.2%, to $1,369 U.S. an ounce, while March palladium advanced $8, or 1.1%, to $723.95 U.S. an ounce. March high-grade copper gained two cents, or 0.7%, to $3.21 U.S. a pound.
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