Gold jumped 3.6 percent to trade above $610 an ounce on Friday as the dollar slipped after the US Federal Reserve raised interest rates but hinted it might end a two-year campaign of rate increases.
Platinum hit a three-week peak and silver rose five percent to $11.06 an ounce, its highest since June 12.
"Gold would continue to be largely influenced by external factors, with further dollar depreciation and a move back up in inflation expectations needed for it to sustain price gains," said Yingxi Yu, precious metals analyst at Barclays Capital.
Gold rose to a three-week high of $613.50 an ounce and was at $612.50/613.20 by 1412 GMT, compared with $592.00/594.00 late in New York on Thursday.
The dollar declined after a tame measure of core US inflation reinforced market expectations that the Federal Reserve might be nearing the end of its two-year monetary policy tightening cycle.
"Gold prices are not always going to do the opposite to the dollar, but when there is nothing else happening a weaker dollar tends to lead to higher gold prices," said Matthew Turner, metals analyst at Virtual Metals.
"People will focus on the dollar."
A weak dollar makes gold cheaper for holders of other currencies and lifts demand. Some investors shift their money from currencies to commodities for better returns.
Trade was volatile as investors adjusted positions on the last day of the quarter and ahead of the Independence Day holiday on Monday and Tuesday in the United States.
Gold hit a 26-year high on May 12 of $730, before tumbling back below $600 and touching a three-month low of $543 on June 14, and analysts said the market had fuel in the tank to resume its rally.
"Underlying market fundamentals, macro-economic factors and geopolitical tensions will continue to support gold speculation, adding upward pressure on prices," National Australia Bank said.
In other precious metals, silver rose to $11.03/11.13 an ounce from $10.50/10.60.
UBS Investment Bank noted that silver held by a US-based exchange-traded fund surged to a record high of 83 million ounces this week as inflows resumed after slowing down earlier.
"For now the ETF has had only a minor impact on physical silver liquidity...But should the ETF grow to 200-300 million ounces, we believe that silver rates could tighten sharply, which in itself could be a trigger for further gains in spot silver," UBS said in a report.
Platinum rose as high as $1,223/1,233 an ounce, versus $1,193/1,199 in New York. Palladium was at $314/320, up from $310/315.
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