MW: Gold up after losing streak, but weekly loss in sight
LONDON (MarketWatch) — Gold futures rose Friday following a string of losses, but prices were still poised for their worst weekly decline in a month.
Gold for December delivery GCZ4, +0.49% rose $7.70, or 0.6%, to $1,283.20 an ounce.
The move came after futures on Thursday hit their lowest settlement since June 18, as a weekly drop in claims for U.S. unemployment benefits spurred concerns the Federal Reserve will consider the economy ready to handle an interest-rate increase in the near future.
Investors on Friday will watch for comments about the labor market from Fed Chairwoman Janet Yellen, who will speak at an annual gathering of the world’s central bankers in Jackson Hole, Wyo.
Gold futures have declined in the previous five sessions, in part as a hawkish tone at the Fed’s meeting in late July resulted in dollar strengthening DXY, +0.05% A stronger greenback makes dollar-denominated assets such as gold more expensive for holders of other currencies.
As well, tighter monetary policy tends to be negative for gold, which has benefited in recent years from unconventional monetary policy measures undertaken by major central banks.
Gold prices were moving toward a 1.9% fall for the week, which would be the largest decline since a 2.1% pullback for the week ending July 18, according to FactSet data.
Elsewhere in metals trading, October platinum PLV4, +0.37% rose $4.80, or 0.3%, to $1,424.10 an ounce, while September palladium PAU4, +0.24% picked up $3.10, or 0.4%, to $883 an ounce.
High-grade copper for September delivery HGU4, +0.69% gained 2 cents, or 0.7%, to $3.19 a pound. September silver SIU4, +0.44% advanced 8 cents, or 0.4%, to $19.49 an ounce.
