Gold advanced, notching a weekly gain amid rising demand for bullion-backed exchange traded funds and signs that inflation may ease. Bullion rose as much as 1.8% to trade above $4,200 an ounce on Friday. Inflows into gold-backed ETFs have reached a four-year high, according to data compiled by Bloomberg.
Adding to the bullish momentum was a surprise announcement by US President Donald Trump that Russia has agreed to release diesel to global energy markets, easing worries about a supply squeeze for the key fuel.
Investors Scoop Up Gold-Backed ETFs
Photo Credit: (Photo: Bloomberg)
Still, gold is down roughly 20% since the US-Iran war erupted in late February as surging energy costs prompted central banks to tighten monetary policy, a headwind for the non-yielding precious metal.
Traders will get a fresh read on inflation next week with the September consumer price index, due to be released on Wednesday. Headline CPI is expected to have accelerated to 0.6% in September on higher gasoline prices, though the pick up is "mostly a story of localized hot spots, not broad-based price pressures," according to Bloomberg Economics' Anna Wong. That "gives the Fed room to remain patient."
Gold closed 1.5% higher at $4,194.24 an ounce in New York, while silver was 2.8% higher at $60.82 an ounce. Platinum and palladium also advanced. The Bloomberg Dollar Spot Index was up 0.2%, notching a fourth straight week of gains.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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