Gold futures traded slightly higher on Friday, with gains setting the stage for the sharpest weekly advance for bullion since late May.

The precious metal’s moves come as moves in the U.S. dollar have been subdued, with the buck headed down 0.2% Friday, as gauged by the ICE U.S. Dollar Index
DXY,
-0.19%
,
putting the dollar’s weekly move at nearly flat for the week.

Long-dated Treasury yields, which touched their lowest levels since February, have also been a part of the upbeat narrative for the yellow metal but yields for government debt were edging higher to end the holiday-shortened week. U.S. markets were closed on Monday in observance of the Fourth of July.

Lingering concerns about the economic outlook, amid the spread of COVID-19’s delta variant, and lofty valuations in equities have helped to buttress values for precious metals, strategists say.

An attempted rebound in equities, after the worst decline for U.S. equities in three weeks, may be checking haven appetite for gold.

Doubts about the Federal Reserve’s monetary-policy strategy, including scaling back its $120 billion-a-month asset-purchase program, also has influenced trading in gold and other precious metals.

“Indeed, investors have a lot to deal with and, between US tapering, virus cases picking up and lifting traveling restrictions, there is still plenty of uncertainty as to where the global economy is going,” wrote Pierre Veyret, technical analyst at ActivTrades.

“The wait-and-see stance prevails so far and prices will have to either clear the $1814 level or break the $1790 support to register increased market directionality,” the analyst wrote.

Meanwhile, silver for September delivery
SIU21,
+0.05%

SI00,
+0.05%

lost 6 cents, or 0.2%, to trade around $25.93 an ounce, after a 0.5% loss on Thursday.

For the week, silver is down 2.2%, while gold is on pace for a 1% weekly gain, which would mark its steepest such rally since the period ended May 28.

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