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Gold Hovering Around $1,300 Level, Posts Weekly Gain

August 18, 2017 at 16:57 by Andrew Moran

Gold futures topped $1,300 in the morning part of Friday’s trading session before paring those early gains. The yellow metal has been hovering around a nine-month high for much of the end-of-week trading session, and will also post another weekly gain.

December gold futures rose $2.20, or 0.17%, to $1,294.60 per ounce at 16:33 GMT on Friday. Gold prices, trading at their highest levels since November, touched a high of $1,307 and then dipped back under $1,300. The precious metal is on track to record a 0.6% weekly gain.

Silver, the sister commodity to gold, is flat to end the trading week. September silver futures dipped $0.01, or 0.11%, to $17.03 an ounce. The white metal is poised to post a weekly gain of 0.1%.

Although equities have rebounded on Friday, they were settling lower on Thursday, causing investors to dive into safe-haven assets, including the yellow metal. There were reports circulating on Wall Street that presidential economic adviser Gary Cohn, a former Goldman Sachs executive, was on the cusp of stepping down from his post, which was later denied by the White House. But traders are concerned that President Donald Trump’s pro-business agenda will not be fulfilled as Washington stews in political turmoil.

Gold prices further advanced because of the terrorist attack in Barcelona, Spain that killed 13 people and injured dozens more.

The precious metal gained more momentum as the US dollar tumbled 0.17%. A weaker greenback is good for commodities like gold and silver because it makes it cheaper for foreign investors to purchase.

Many analysts say that the US central bank has fresh doubts about whether to raise interest rates or not. Because of the political upheaval, mixed US and international economic data, a falling dollar, and growing geopolitical tensions, some investors think the Federal Reserve will delay a third 2017 rate hike until December. According to the CME Group FedWatch tool, there is a near 50% chance of a December rate hike by the Federal Open Market Committee (FOMC).

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