Gold Futures Settle Higher As Dollar Weakens
Gold prices edged higher on Friday, riding on dollar’s weakness and on record spikes in new coronavirus cases across the U.S. and several countries in Europe.
The dollar index slipped to 92.74 early afternoon, and was last seen at 92.80, down 0.19% from previous close.
Gold futures for December closed firmer by $12.90 or about 0.7% at $1,886.20 after rallying to a high of 1,895.80 earlier in the day.
However, Gold futures suffered a loss of more than 3% in the week, with the steep slide on Monday contributing to the weekly decline.
Silver futures for December ended up $0.469 at $24.775 an ounce, while Copper futures for December settled at $3.1780 per pound, gaining $0.0330.
A report released by the Labor Department showed producer prices in the U.S. increased by slightly more than anticipated in the month of October. The report said the department’s price index for final demand rose by 0.3% in the month, after climbing by 0.4% in September. Economists had expected prices to inch up by 0.2%.
The University of Michigan’s report said consumer sentiment index fell to 77.0 in November after rising to a seven-month high of 81.8 in October. The pullback came as a surprise to economists, who had expected index to inch up to 82.0.
The unexpected decrease by the headline index came as the index of consumer expectations tumbled to 71.3 in November from 79.2 in October.
The report showed a much more modest drop by the current economic conditions index, which edged down to 85.8 in November from 85.9 in the previous month.
On the inflation front, the report said one-year inflation expectations crept up to 2.8% in November from 2.6% in October, while five-year inflation expectations rose to 2.6% from 2.4%.
On the virus front, U.S. Covid-19 infections hit fresh records and remained above 100,000 for an eighth consecutive day, prompting several cities and states to slap new restrictions on public life.
Germany is likely to continue with its restrictions, and France intends to keep lockdown for at least two more weeks. Spain and the UK also continue to see spikes in coronavirus cases.
White House coronavirus adviser Dr. Anthony Fauci said that the vaccine to bring an end to the pandemic now appears to be on the horizon, but it may not be enough to help eradicate the disease.
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