Gold rises up 1.9 percent to close week, month

GMT 01:02 2016 Saturday ,30 April

Arab Today, arab today Gold rises up 1.9 percent to close week, month

Gold futures
Chicago - XINHUA

Gold futures on the COMEX division of the New York Mercantile Exchange rose sharply on Friday.

The most active gold contract for June delivery rose 24.10 U.S. dollars, or 1.9 percent, to settle at 1,290.50 dollars per ounce.

For the week, gold futures advanced 4.92 percent, while for April, gold gained 4.44 percent.

Gold futures climbed higher for all the five trading days this week and settled the highest price on Friday since Jan. 27, 2015, when the gold settled at 1291.70 dollars per ounce.

Analysts said that gold was given extensive support as the U.S. Dollar Index fell by 0.7 percent to 93.10 as of 18:40 GMT. The index is a measure of the dollar against a basket of major currencies.

Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.

U.S. stocks open lower Friday, and European major stocks also settled lower, boosting investing appetite for gold, according to analyst.

Additionally, the worse-than-expected data on Friday also help gold futures extend gains. U.S. personal consumption expenditures increased 12.8 billion U.S. dollars or 0.1 percent in March, missing market estimates, the Commerce Department reported Friday.

However, gold was prevented from rising further as report released by the U.S. Department of Labor showed personal income better than expected despite weaker than expected spending.

Analysts believed that this is a sign of the U.S. economy still struggling to recover, and another indication that the U.S. Federal Reserve will be cautious and patient in raising interest rates.

The market is still digesting the news from the Federal Open Market Committee (FOMC) announcement on Wednesday which indicated that the Fed would be patient in raising interest rates.

Silver for July delivery added 23.1 cents, or 1.31 percent, to close at 17.819 dollars per ounce. Platinum for July delivery rose 27.7 dollars, or 2.64 percent, to close at 1,078.40 dollars per ounce.

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