Gold prices rose to a one-week high on Friday (September 18), ending three consecutive weeks of declines on the weekly chart and posting their first weekly gain in four weeks. Gold rose about 1% for the week, mainly driven by falling oil prices, which eased concerns about persistently rising inflation, while other major precious metals also moved higher this week.
Spot gold rose 1.2% to $4,390.11 per ounce, having touched its highest level since September 11 during the session; U.S. gold futures closed up 0.6% at $4,424.90 per ounce.
The dollar climbed to a more than seven-week high on the 18th, and the Federal Reserve (Fed) raised rates to 3.75%–4.00% while signaling it may continue hiking in the coming months, putting pressure on non-yielding gold. However, EverBank World Markets President Chris Gaffaney noted that short positions betting on falling gold prices had been rapidly covered, providing support for gold.
On the demand side, Indian buyers held off on entering the market in anticipation of lower gold prices, while the Chinese market was supported by strong investment demand. In addition, lower oil prices helped ease inflation pressure. Gaffaney said gold is currently testing resistance near $4,400, and if it breaks through, further upside could open up.
Other precious metal prices:
Spot silver rose 2.3% to $66.70 per ounce;
Spot platinum gained 2.2% to $1,812.50 per ounce;
Spot palladium climbed 1.5% to $1,310.20 per ounce;
