· Gold prices settled Friday at their highest level since early June, buoyed by drop in the dollar to a three-week low.
· The moves for gold and the greenback, which often trade inversely as moves in the U.S. unit can influence the attractiveness of gold to holders of other currencies, came on the heels of a speech by U.S. Federal Reserve Chairwoman Janet Yellen that didn’t offer clues on the central bank’s monetary policy investors hoped for.
· In a much-anticipated speech at the Kansas City Federal Reserve Bank’s symposium in Jackson Hole, Wyo., Yellen steered clear from questions about current interest-rate policy. Investors also looked to a speech Friday from European Central Bank President Mario Draghi for hints as to when and how the bank will being to unwind its monetary easing.
· Gold for December delivery GCZ7, +0.11% rose $5.90, or 0.5%, to settle at $1,297.90 an ounce after tapping highs above $1,300 overnight. Gold has moved in a narrow range this week, but settled Friday at the highest level for a most-active contract since June 5, according to FactSet data. The contract finished the week up 0.5%.
· For now, “the rebound in gold prices likely reflect speculators testing the highest price levels for this year and focusing on continued policy uncertainty and risks of a debt ceiling showdown for the U.S. government,” said Rob Haworth, senior investment strategist of U.S. Bank Wealth Management. “In our view these issues are likely more transitory, and the strength in gold is likely to abate with a debt ceiling resolution and continued Fed policy normalization.”
· September silver SIU7, +0.36% rose 8.6 cents, or 0.5%, to $17.049 an ounce, for a weekly rise of 0.3%.
Reference: Market Watch
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