Gold Futures Shed Gains After Hitting 5-month High, Settle Just Marginally Up

Gold prices climbed to five-month highs on Friday, with rising Middle East tensions pushing up the demand for the safe-haven metal.

However, amid concerns about the outlook for interest rates, the yellow metal gave up most of its gains as the session progressed and eventually ended the day’s session just marginally up.

A somewhat subdued dollar supported gold’s uptick. The dollar index, which climbed to 106.80 in early New York session, dropped to 106.32 around mid morning, but recovered to 106.55 later on, cutting its loss to just around 0.05%.

Edward Moya, Senior Market Analyst at OANDA expects the coming week will be key for the bond as all the rate decisions and the Treasury’s refunding statement are due.

Gold futures for December ended higher by $1.10 at $1,998.50 an ounce, after rising to a high of $20,17.70 an ounce.

Silver futures for December ended down $0.021 at $22.887 an ounce, while Copper futures for December settled at $3.6460 per pound, gaining $0.0615.

A report released by the Commerce Department on Friday showed personal income in the U.S. increased by slightly less than expected in the month of September.

The Commerce Department said personal income rose by 0.3% in September after climbing by 0.4% in August. Economists had expected income to advance by another 0.4%.

Meanwhile, the report said personal spending increased by 0.7% in September after rising by 0.4% in August. Spending was expected to climb by 0.5%.

The Commerce Department also said its reading on consumer prices rose by 0.4% in September, matching the increase in August.

The annual rate of consumer price growth was unchanged at 3.4%, while the annual rate of core consumer price growth slipped to 3.7% in September from 3.8% in August.

Revised data released by the University of Michigan on Friday showed consumer sentiment in the U.S. deteriorated by slightly less than previously estimated in the month of October. The report said the consumer sentiment index for October was upwardly revised to 63.8 from the preliminary estimate of 63.0.

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