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Gold heads for best week since August as rally gathers pace

The precious metal powers toward its best year since 2010.
Image: Carla Gottgens, Bloomberg

Gold is heading for its biggest weekly advance in more than four months as it powers toward its best year since 2010.

Bullion held near the highest in seven weeks on Friday, with its late-2019 rally coming even as Asian equities rose, US benchmarks notched fresh records and US-China trade concerns eased.

The precious metal is up 18% this year as central banks reduced interest rates, and the to-and-fro between the US and China over trade boosted demand for havens. The Federal Reserve has signalled it would keep interest rates on hold through 2020 following three cuts this year, and a gauge of the dollar has erased its annual gains.

“A weakening dollar helped to propel precious metals prices but this single factor is insufficient to explain a jump like this,” Margaret Yang, an analyst at CMC Markets Singapore Pte., said in a note. “Bargain hunting is probably a better justification as gold looks for a technical rebound after three-month consolidation.”

Spot gold retreated 0.1% to $1 509.42 an ounce at 2:23 pm in Singapore, after touching $1 514.09, the highest intraday level since November 4. It’s up 2.1% this week, the biggest gain since the period ended August 9. Prices peaked at $1 557.11 in early September, the highest in more than six years.

In other precious metals, spot silver fell 0.5%, while palladium advanced 0.3% and platinum rose 0.2%.

© 2019 Bloomberg L.P.

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