Gold prices edge up after worst day in nearly two months

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Gold prices recovered some ground on Friday, paring some of their losses from their worst day in nearly two months on Thursday, as markets finished off a rollercoaster week on a more subdued note.

Price action

  • Gold for December delivery
    GC00,
    -0.04%

    GCZ23,
    -0.04%
    rose $6, or 0.3%, to settle at $1,946.20 per ounce on Comex, posting a marginal decline for the week.

  • December silver
    SI00,
    -0.10%

    SIZ23,
    -0.10%
    gained 16 cents, or 0.7%, to settle at $23.84 per ounce, gaining 2% for the week.

  • October platinum
    PLV23,
    -0.10%
    rose by $9.50, or 1%, to $934.10 per ounce, gaining 0.5% on the week, while December palladium
    PAZ23,
    +0.07%
    fell $13.40, or 1.1%, to $1,256 per ounce, gaining 0.3%.

  • Copper for December
    HGZ23,
    -0.05%
    was flat on the day at $3.696 per pound, but fell 2.8% for the week.

Market drivers

Gold prices finished the week little-changed, despite a sharp selloff that followed Federal Reserve’s policy meeting on Wednesday which signaled that the central bank expects to keep its policy interest rate above 5% for longer than the market had previously expected.

While prices stabilized on Friday, analysts wondered whether more volatility might lie ahead.

“As a non-yielding asset, higher interest rates usually prove to be a headwind for gold prices as they increase the opportunity cost of holding the yellow metal,” said Mike Ingram, market analyst at Kinesis Money, in emailed commentary.

U.S. stocks, which were also rattled by the Federal Reserve’s policy announcement, rebounded on Friday, but the high-flying Nasdaq Composite
COMP
was still on track to log its worst weekly drop since March.

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