Gold held recent gains to trade near a two-week high on Friday and was headed for its biggest weekly jump since January, after the Federal Reserve cautioned over its rate hike path and US economic growth. Spot gold was steady at $1,171.20 an ounce by 0730 GMT, near a two-week high of $1,177.46 hit on Thursday. The metal is up about 1 percent for the week - its biggest weekly gain since late January.
Gold had dipped to a four-month low earlier this week as concerns mounted over higher US interest rates which could dent demand for non-interest bearing bullion.
"Gold (is) still getting traction from dovishly perceived FOMC statement, short-covering and fresh purchases," said HSBC analyst James Steel, referring to the Federal Open Market Committee.
In the physical markets, Chinese buying was steady, with premiums on the Shanghai Gold Exchange staying at a robust $6-$7 an ounce on Friday.
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