Silver, copper also rally as U.S. consumers turn spendier
By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures gained Friday as Wall Street brimmed with optimism following news the U.S. consumer spent more than expected in September, and a previous-session price dip enticed investors back to the metal.
Gold for December delivery GC1Z +0.66% added $10.10, or 0.6%, to $1,678.70 an ounce on the Comex division of the New York Mercantile Exchange. That comes on the wake of a 0.8% decline on Thursday.
Gold tracked other commodities and other assets, adding to gains after U.S. retail sales data. The Commerce Department reported sales rose a seasonally adjusted 1.1% in September on more purchases of autos, clothes, and home furnishings. That was the largest increase in seven months. Read more on retail sales.
In recent sessions, gold has tended to follow U.S. equities, losing some traction as a safe-haven asset. U.S. stocks rallied. The Dow Jones Industrial Average DJIA +0.77% was recently up 113 points, or 1.1%, at 11,599. It’s gained 4% this week.
Gold had suffered in past weeks as faltering sentiment on Wall Street sent investors scrambling for cash, dumping gold and other metals to meet margin calls and other obligations.
A weaker dollar on Friday also helped the metal and other raw-materials futures. The dollar index DXY -0.59% , which measures the greenback against a basket of six currencies, slipped to 76.613 from 76.978 in North American trade late Thursday. Read more on currencies.
A weaker dollar is a positive for gold and other commodities as it renders them cheaper to holders of other currencies, broadening their investment appeal.
The news on the retail sales sent silver and copper rallying. The metals, more closely related to industrial uses than gold, added 2.3% and 3%, respectively.
December silver SI1Z +2.16% added 71 cents to $32.38 an ounce. December copper HG1Z +3.21% rose 10 cents to $3.41 a pound.
