Gold futures climbed Friday, with a loss of nearly $40 U.S. an ounce in previous sessions and weakness in the U.S. dollar helping to buoy demand for the metal as traders continued to monitor news out of the euro-zone.
Gold for December delivery rose $13, or 0.7%, to trade at $1,772.60 U.S. an ounce on the Comex division of the New York Mercantile Exchange. Futures prices were poised for a weekly gain of around 1%.
Recent declines in gold in the wake of a fall in Italian bond yields have "created a good entry opportunity for investors wishing to enter the market at an attractive level," said one expert.
Italian bond yields declined as concerns about the nation’s debt crisis eased.
Italy’s Senate approved on Friday a budget law that includes new austerity measures. That clears the path for the parliament’s lower chamber to pass the law on Saturday and Prime Minister Silvio Berlusconi to resign. Read about European markets.
The International Atomic Energy Agency reportedly issued a report earlier this week saying it has "serious concerns" about Iran’s nuclear program.
Gold appeared unfazed by U.S. economic data Friday. Consumer sentiment rose to 64.2 in the preliminary reading for November, compared with a final October reading of 60.9, according to a report from the University of Michigan and Thomson Reuters.
Weakness in the U.S. dollar, which makes gold less expensive for holders of other currencies, also provided some support for the metal. The dollar index, which tracks the U.S. unit against a basket of six major rivals, slipped to 77.227 from 77.660 late Thursday.
Against this backdrop, prices for other metals were trading higher, with silver, platinum and palladium poised for gains of 1% or less for the week, but copper set for a weekly decline around 4%.
December copper was up four cents, or 1.1%, to $3.41 U.S. a pound. Silver for December delivery tacked on 33 cents, or 1%, to $34.44 U.S. an ounce.
January platinum rose $11, or 0.7%, at $1,638.30 U.S. an ounce and December palladium added $11.05, or 1.7%, to $658.85 U.S. an ounce
Related Stories
