Gold futures gave up most of their earlier gains on Friday, but hold ground above the key $1,500 price and look poised to score a second weekly climb in a row.
Downbeat economic data, with a reading on U.S. consumer sentiment revised down to 95.5 in October from an initial 96, along with expectations for more easing from global central banks that could add further support for bullion, provided support for gold.
However, news on Friday that the U.S. and China have made progress in trade talks and are close to finalizing parts of a phase one deal dulled some of that haven demand for the yellow metal.
on Comex was up 80 cents, or 0.05%, to $1,505.50 an ounce after trading as high as $1,520.90 during the session. The most-active contract was set to mark its highest finish since Oct. 9 according to FactSet data, following a 0.6% gain for the metal on Thursday.
For the week, the yellow metal was on track to rise 0.8%, marking a second straight weekly rise.
Silver for December delivery
meanwhile, added 14.1 cents, or 0.8%, to trade at $17.945 an ounce, with prices set for their highest close since Sept. 6. The white metal was on pace for a weekly gain of 2%.
Investors await the Federal Reserve’s policy decision at a two-day gathering on Oct. 29-30, with traders expecting the U.S. central bank to deliver its third quarter percentage point interest cut of the year. However, it isn’t clear if the Fed will conform to high market hopes and ease policy further.
Another factor that has added some support for bullion and precious metals has been Brexit. U.K. Prime Minister Boris Johnson said he would seek a general election in Dec. 12 to break a Brexit deadlock, but it is uncertain if he can win Parliament’s support for the vote, which could raise the chances of a disorderly exit from Europe’s trade bloc.
Investors say those uncertainties in the market as well as other demand factors may help bullion mount a breakthrough after a lackluster stretch.
“The recent rebound was also important from a technical point of view, as this recovery is breaking up the negative trendline of the past few weeks. The key level of $1,500 is now a support, while the first resistance level is placed at $1,520,” wrote Carlo Alberto De Casa, chief analyst at ActivTrades, in a Friday note.
Seasonal factors also have been cited as a boost for gold, with commodity experts saying that the India holiday of Diwali, where gold buying tends to increase, could deliver a fillip to futures.
“Gold recovered to $1,500 just in time for the long weekend of Diwali celebrations,” he wrote.
Rounding out trading in other Comex metals, December copper
added 0.3% to $2.677 a pound, with prices up about 1.6% for the week.
traded at $932.60 an ounce, up 0.8% for the session, poised for a weekly rise of 4.1%. December palladium
fell by 0.2% to $1,744.40 an ounce, paring its weekly rise to around 1.6%.