Gold futures settle higher Friday and mark sharpest weekly rise in 7 weeks, despite stock market rebound


Gold futures on Friday booked a solid gain for the session, helping the commodity mark its third straight weekly advance, as choppiness in stocks, a tepid U.S. dollar and rapidly receding yields proved a bullish cocktail for bullion. August gold
traded $10.40, or 0.6%, higher to settle at $1,810.60 an ounce, with a weekly advance of 1.53%, based on last Friday’s closing level. The weekly gain was the metal’s third in a row and its sharpest since the week ended May 21, FactSet data show, underscoring an uptrend taking hold in the yellow metal. A so-called golden cross formed it gold’s chart earlier in the week. A weaker dollar was likely the main catalyst for gold’s gains. The dollar
was down 0.2% on Friday and down to flat on the week. A weaker dollar can make assets priced in the currency comparatively more expensive to buyers using other monetary units. Contributing to the upswing for gold was a rally in bonds, which sent long-dated yields, notably the 10-year Treasury note
and the 30-year bond
to lows not seen since February, diminishing the opportunity cost of owning nonyielding gold over bonds. The upbeat mood in haven gold came even as the Dow Jones Industrial Average
the S&P 500 index
and the Nasdaq Composite Index
were all staging a rebound from Thursday’s yield-inspired selloff.


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