Gold settles up Friday, marks sharpest weekly rise in 7 weeks, despite stock market rebound

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Gold futures on Friday booked a gain for the session, helping the commodity mark its third straight weekly advance, as choppiness in stocks, a tepid U.S. dollar and rapidly receding yields proved a bullish cocktail for bullion in a U.S. holiday-shortened week.

The precious metal’s moves come as trade in the U.S. dollar have been subdued, with the buck down 0.2% Friday and off slightly to flat for the week, as gauged by the ICE U.S. Dollar Index DXY, -0.28%.

August gold GCQ21, +0.64% GC00, +0.64% traded $10.40, or 0.6%, higher to settle at $1,810.60 an ounce, with a weekly advance of 1.53%, based on last Friday’s closing level. The weekly gain was the metal’s third in a row and the sharpest since the week ended May 21, FactSet data show, underscoring an uptrend taking hold in the yellow metal.

Long-dated Treasury yields, the 10-year TMUBMUSD10Y, 1.352% and 30-year Treasurys TMUBMUSD30Y, 1.985%, which touched their lowest levels since February, have been a part of the upbeat narrative for the yellow metal. U.S.

Lingering concerns about the economic outlook, amid the spread of COVID-19’s delta variant, and lofty valuations in equities have helped to buttress values for precious metals, strategists say.

The positive finish for gold on Friday came even amid a rebound in the Dow Jones Industrial Average DJIA, +1.28%, the S&P 500 index SPX, +1.04% and the Nasdaq Composite COMP, +0.89%, which all registered their worst day in three weeks on Thursday, but were rebounding impressively to end the week.

Doubts about the Federal Reserve’s monetary-policy strategy, including scaling back its $120 billion-a-month asset-purchase program, also have influenced trading in gold and other precious metals.

“Indeed, investors have a lot to deal with and, between US tapering, virus cases picking up and lifting traveling restrictions, there is still plenty of uncertainty as to where the global economy is going,” wrote Pierre Veyret, technical analyst at ActivTrades.

“The wait-and-see stance prevails so far and prices will have to either clear the $1814 level or break the $1790 support to register increased market directionality,” the analyst wrote.

Meanwhile, silver for September delivery SIU21, +1.05% SI00, +1.05% rose 24.7 cents, or 1%, to settle at $26.234 an ounce, after a 0.5% loss on Thursday. For the week, however, silver finished 1% lower.

Rounding out Comex trade, October platinum PLV21, +2.06%  traded $21.20, or 2%, higher to close at $1,095.70 an ounce, notching a weekly gain of 0.7%; while palladium for September delivery PAU21, +0.19%  edged up $1.80, or less than 0.1%, to finish at $2,812 an ounce.

September copper HGU21, +1.81%   HG00, +1.81%  rose 8.1 cents, or 1.9%, to settle at $4.3455 a pound. For the week, high-grade copper ended up 1.6%, based on the most-active contract.

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