Gold futures traded higher Friday, vying to end the week the way they started it: settling at a record.
Gold for August delivery added $17.90, or 1.1% to trade at $1,605 U.S. an ounce on the Comex division of the New York Mercantile Exchange.
A settlement around these levels would supplant gold’s latest nominal record, $1,602.50 an ounce on Monday. Adjusted for inflation, gold would have to settle close to $2,400 U.S. an ounce to supersede a record around $850 U.S. an ounce reached in January 1980.
Friday’s advance came after a three-day losing streak for the metal, which recently came under pressure amid a weaker dollar and as a plan to resolve the euro-zone’s sovereign-debt issues reduced the metal’s safe-haven appeal.
On Thursday, European leaders agreed to a second bailout for Greece and put in place arrangements designed to prevent the spread of debt problems through the region.
Gold benefitted from lingering doubts about the success of the plan.
Europe’s debt crisis "is not yet over. For example, other euro periphery states that are currently viewed as critical will have to obtain funding in the coming months and years on the capital market, which could result in further uncertainty," analysts at Commerzbank said in a note to clients Friday.
Gold’s move higher could be temporary despite such worries, one strategist said.
The resistance level for gold prices remains around $1,600 U.S. an ounce, the strategist said, adding that "short-term there is some downside risk for gold."
Most metals futures traded higher Friday. September silver rallied $1.19, or 3.1%, to $40.15 U.S. an ounce. Copper for September delivery rose less than a penny, or 0.1%, to $4.39 U.S. a pound.
October platinum gained $7.60, or 0.4%, to $1,795.40 U.S. an ounce, while palladium for September delivery was the outlier, losing $2, or 0.3%, to $807 U.S. an ounce.
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