Prices for gold bounced above $1,800 U.S. on Friday, buoyed by bets that central banks may keep interest rates relatively low to stave off lingering growth risks.
But an overall uptick in the dollar, while investors tried to gauge the timing of the U.S. Federal Reserve’s taper timeline, kept bullion on course for a weekly decline.
Spot gold rose 0.3% to $1,800.40 U.S. per ounce overnight Friday, Down 1.4% so far, it was headed for its first weekly fall in five. U.S. gold futures rose 0.1% to $1,802.10.
Easing gold’s advance, the American dollar was a bit softer on the day, making bullion more appealing for those holding other currencies, but the greenback was still bound for a weekly rise.
Gold continues to remain a buy on dips because central banks are in no hurry to raise interest rates.
Despite elevated macro risks, the Fed is unlikely to take 2021 taper off the table and gold should head lower in the fourth quarter, around $1,700.
Silver rose 0.54 % to $24.20 U.S. per ounce but was down 2% this week.
Platinum gained 0.4% to $981.19 U.S.. It was headed for its biggest weekly decline since early August, falling 4.2%.
Palladium climbed 0.5% to $2,189.33 U.S. but was down over 9% for the week.
