Gold rises 1 per cent on gloomy US consumer outlook
For the week, gold fell around 2.5 per cent, its second straight weekly decline and its biggest weekly loss since early May. Traders cited panic liquidation by hedge funds for the weekly losses, but said that factor was missing on Friday.
“The lack of fund selling that started last week allowed gold to move higher” on Friday, said Miguel Perez-Santalla, vice president of sales of Heraeus Precious Metals Management.
Bullion slipped to three-week lows in early trade before Asian bargain-hunting boosted prices. Gains accelerated after US data showed American consumers gloomier about the economic outlook than they have been since May 1980.
Spot gold was up 0.9 per cent at $1,804.70 an ounce by 2:59 p.m. EDT (1859 GMT), after hitting $1,761.94, its lowest level since Aug. 26.
US gold futures for December delivery rose $33.30 to settle at $1,814.70 an ounce. Trading volume was in line with the avearge for this week.
Silver rose 1.3 per cent to $40.33 an ounce.
EYES ON FED NEXT WEEK
Federal Reserve policy makers meet next week, and some investors expect them to announce a program to stimulate the economy by buying longer-dated US government debt while selling short paper. Many investors have already nicknamed the potential program “Operation Twist.” - Source: Reuters
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