Gold Futures Settle Modestly Higher

Gold futures settled modestly higher on Friday as rising inflation in the U.S. and Europe boosted the yellow metal's safe-haven appeal.

However, amid the rising possibility of the Federal Reserve continuing to remain aggressive with regard to interest rate hikes, gold's uptick was just modest.

The dollar index recovered after falling to 111.58 in the Asian session. The index climbed to 112.67 before paring gains and dropping to 112.21, down marginally from the previous close.

Gold futures for December ended higher by $3.40 or about 0.2% at $1,672.00 an ounce.

Gold futures gained about 1% for the week but posted a monthly loss of 3.1%. In the July - September quarter, gold futures shed 7.5%.

Silver futures for December ended up $0.327 at $19.039 an ounce, while Copper futures for December settled at $3.4125 per pound, down $0.0055 from the previous session.

"I'm quite comfortable" with raising interest rates to 4-4.5% this year and 4.5-5% next year, San Francisco Fed President Mary Daly told reporters after a speech at Boise State University on Thursday, adding she expects that rates will need to stay at that level for all of 2023.

Cleveland Fed President Loretta Mester echoed the hawkish rhetoric, saying the U.S. central bank will need to go even further than it signaled last week.

St. Louis Federal Reserve Bank President James Bullard noted that the weekly Jobless claims reported on Thursday was a "super low number" and said it was important to avoid a 1970s inflation scenario.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT