Gold Posts Biggest Weekly Gains Since Early February
Gold futures ended higher last Friday, helping the yellow metal record its highest weekly climb since early February, as weakness in the US dollar, following Wednesday’s Federal Reserve decision, provided a runway for gains.
April gold rose $3.10, or 0.3%, to settle at $1,230.20 an ounce, it highest finish since early March. Gold gained about 2.4% for the week, which was the strongest such gain since the week ended February 3.
Silver for May delivery added 8.3 cents, or 0.5%, to close at $17.413 an ounce, for a weekly gain of 2.9%, its best since January.
A measure of the dollar’s strength, the ICE U.S. Dollar Index DXY, -0.04% looked to end the week about 1.1% lower. Weakness in the buck can make assets priced in the currency, like gold, more appealing to those using other monetary units to buy it.
On Wednesday the Fed lifted benchmark interest rates by a quarter-point, as expected. Its statement and forecasts for future rate increases was seen as less aggressive than had been anticipated. That put some pressure on the dollar.
The so-called “Trump bump” in the financial markets will continue to fade as the realities of the legislative process will slow or stop many Trump initiatives, which will also be bullish for gold. Gains for US equities have slowed recently.
Still, some market strategists see near-term headwinds for precious metals, especially since the bullish sentiment spurred by Trump’s proposals to juice the US economy through fiscal-stimulus measures haven’t entirely vanished.