Gold rose to a two-week high on Friday, holding above the $1,500 U.S./ounce psychological level, as weak U.S. economic data spurred expectations for another interest rate cut by the Federal Reserve later this month. As well, palladium scaled a fresh peak.
Spot gold hit its highest since Oct. 10 at $1,504.35 U.S., but was down slightly early Friday morning at $1,501.70 U.S. per ounce. The metal has gained 0.8% this week, heading for its biggest weekly gain since the week ended Aug. 20. U.S. gold futures were flat at $1,505 per ounce.
This is the second time in past two weeks that spot gold has crossed the $1,500 level. The metal surpassed the ceiling for the first time in more than six years on Aug. 7 and hit a record high of $1,557 U.S. on Sept. 4.
New orders for key durable goods in the U.S. fell more than expected in September and shipments also declined, a sign that business investment remains soft as a result of the U.S.-China trade war.
Among other metals, palladium hit an all-time high of $1,785.50 U.S. on supply concerns and was last up 0.2% at $1,780.55 an ounce.
Palladium goes into the making of catalytic converters used in exhaust systems of vehicles, and concerns over its supply running out have helped lift prices by more than 41% this year alone, despite a weakening auto sector.
Silver rose 0.1% to $17.80 U.S. per ounce. Platinum was up about 0.1% at $924.40 U.S., after scaling a more than three-week high in the previous session.
