Gold prices rise, find footing as dollar weakens
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September 29, 2020Gold futures on Friday were trading modestly higher as weakness in the dollar, helped to fuel some modest buying in bullion despite a rally in stocks that would otherwise suggest waning appetite for assets perceived as havens.
The dollar on Monday was retreating 0.5%, after last week putting in a weekly gain of 1.8%, as measured by the ICE U.S. Dollar Index DXY, -0.44%, FactSet data show.
Last week, gold and silver prices came under pressure due to the mini rally in the dollar, which can make assets priced in bucks relatively more expensive to overseas buyers.
December gold GCZ20, 0.55% gained $4.50, or 0.3%, at $1,870.80 an ounce, after booking a 4.9% weekly drop on Friday—the steepest for a most-active contract since the period ended March 13, FactSet data show.
Meanwhile, December silver SIZ20, 1.22% headed 6 cents, or 0.3%, higher to reach $23.155 an ounce, following a weekly decline of a 14.9%, its sharpest weekly drop since the week ended March 13.
Moves for gold and silver also came as appetite for assets perceived as risky, like stocks, picked up to start the week. The S&P 500 SPX, +1.59% and Dow Jones Industrial Average DJIA, +1.33% were poised to rise to start trade for Wall Street, following gains in Asian and European stock markets.
