Gold, which hit a 10-week-high of $1,226.42 an ounce on Thursday, had held near $1,200 since late August as traders weighed geopolitical risks that could boost the metal’s allure as a haven against rising interest rates that curb its appeal. On Friday, prices dropped but gold still poised for a second weekly advance. Most Asian and European stocks recovered after the biggest sell-off in global equities since February, as U.S. stock futures extended gains and Treasury yields ticked higher.
“Gold bulls were unstoppable on Thursday as global risk aversion sent investors sprinting to safe-haven assets,” said Lukman Otunuga, research analyst at brokerage FXTM. “Although gold prices are noticeably weaker this morning, bulls remain in the driving seat above the $1,213 level. While the technical outlook points to further upside, fundamentals are still in the bear’s favor.”
A gauge of gold-mining equities tracked by Bloomberg Intelligence also had the biggest increase since 2016 on Thursday. On Friday, Randgold Resources Ltd. gained 4 percent, Newcrest Mining Ltd., Australia’s largest producer, rose 3.3 percent and Zijin Mining Group Co. climbed 5.5 percent in Hong Kong.
Other precious metals Silver +0.2% Platinum steady, set for 4th weekly advance in last 5 weeks Palladium +0.9% to $1,089/oz, near highest since January, when record set
(By Ranjeetha Pakiam and Rupert Rowling)
