Gold climbed for a third session in a row Friday, but its rise on the back of declines in the U.S. dollar and recent weakness in assets perceived as risky wasn’t enough to give the metal’s prices a boost for the week.
August gold GCQ7, -0.10% rose $7, or 0.6%, to settle at $1,256.40 an ounce, with futures down a dime from last Friday’s settlement, after posting losses in each of the past two weeks.
July silver SIN7, +0.02% gained 13.8 cents, or 0.8%, to $16.647 an ounce. For the week, silver lost a bit more than a penny.
“Gold is consolidating from the recent drawback, but is still in a correction mode, to be clear,” said Nico Pantelis, head of research at Secular Investor.” We should be nearing the bottom of the current correction in the next week or two, from where a bigger climb should start. We think August could be an ideal month to kick-start this new uptrend in gold, which could last till the end of the fall.”
A softening dollar helped to give precious metals get a lift Friday, with the ICE U.S. Dollar Index DXY, +0.05% a measure of the greenback against a half-dozen currencies, down 0.4%. Slack in the dollar can give commodities priced in the currency a boost, making them cheaper for buyers using weaker currencies.
However, yields on U.S. government bonds, including the 10-year benchmark Treasury note TMUBMUSD10Y, +0.08% have remained persistently low. That’s a reflection of Wall Street’s doubt the U.S. central bank can lift rates quickly, as questions about sluggish inflation and below-potential consumer spending continue. And mixed data on Friday only added to the cloudy picture serving as the backdrop to Fed decision-making. May new-home sales roared back from a soggy April, while a purchasing managers index fell to a nine-month low in June.
Offering gold another reason to rise Friday, St. Louis Fed President James Bullard said the Fed can afford to stop raising short-term interest rates and wait and see how economic developments play out.
Meanwhile, precious metals have also benefited over the week from haven bids, amid concerns about the impact of falling crude-oil prices CLQ7, +1.14% which have recently weighed on equity benchmarks, the Dow Jones Industrial Average DJIA, -0.01% and the S&P 500 index SPX, +0.16%
Read: Will falling oil prices help bond investors beat the Fed?
Also on Comex Friday, July copper HGN7, -0.06% rose 2.5 cents, or 1%, to $2.624 a pound, ending around 2.3% higher on the week, while July platinum PLN7, -0.23% edged up $3.80, or 0.4%, to $929.40 an ounce—up 0.3% for the week. September palladium PAU7, -0.27% bucked Friday’s trend to end at $856.65 an ounce, down $23.85, or 2.7%, which gave it weekly loss of 1%.
Among the exchange-traded funds, the SPDR Gold Trust GLD, +0.43% was up 0.5%, lifting prices for the week by about 0.1%. The iShares Silver Trust SLV, +0.70% rose 0.8% in Friday dealings, and the VanEck Vectors Gold Miners GDX, +1.70% climbed 1.8%.