Gold hits one-week high
Gold prices reached a one-week high as investors engaged in bargain hunting following a recent dip to two-month lows. Market participants are currently weighing the impact of potential US Federal Reserve interest rate hikes against persistent inflation concerns.
Why it matters
Gold serves as a critical hedge against inflation and interest rate volatility, making its price movements a key indicator of global economic sentiment.
REUTERS Gold rose for a second straight session on Friday, touching a one-week high, as bargain buying emerged after bullion fell to two-month low earlier this week, while traders assessed the likelihood of further US Federal Reserve interest rate hikes.
Spot gold rose 1.5 percent to $4,194.36 per ounce by 03:29 p.m. EDT (1929 GMT), heading for a weekly gain of about 1.3 percent.
The metal fell to a two-month low on Wednesday as a stronger dollar and rising US Treasury yields weighed on the non-yielding metal.
US gold futures for December delivery gained 1.4 percent to settle at $4,216.3. Bullion gained due to “bargain hunting at the lows, as a floor has been building in the $4,000-region,” said Rhona O’Connell, head of market analysis at Stone X.
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