Gold edges higher after seeing 9-week low as traders hope for U.S. debt-ceiling deal

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Gold prices edged higher on Friday after the most-active contract settled at its lowest level in about nine weeks a day earlier.

Expectations that a deal on the U.S. debt-ceiling could be reached in the coming days are helping to support the yellow metal, analysts said, by causing the dollar to soften.

Price action

  • Gold futures for June delivery


    gained $9.20, or 0.5%, to $1,952.80 per ounce on Comex.

  • Silver futures for July delivery


    gained 39 cents, or 1.7%, to $23.30 per ounce.

  • Palladium for June delivery 

    gained $33.80, or 2.4%, to $1,452 per ounce, while platinum for July delivery

    rose by $9.50, or 0.9%, to $1,035 per ounce.

  • Copper for July delivery

    gained 8 cents, or 2.2%, to $3.68 per pound.

Market drivers

Precious metals analysts are questioning whether gold’s pullback from its multiyear highs reached in early May is a sign of further declines to come, or just a short-lived pause before the yellow metal trudges higher.

“Yet while gold is undoubtedly trending downward currently, it is worth remembering that $1,950 an ounce remains a very high level historically for the precious metal and it is still trading well over $100 an ounce higher than where it was at the start of the year,” said Rupert Rowling, a market analyst for Kinesis Money, in emailed commentary.

Gold has lagged behind as the U.S. dollar has moved higher. A stronger dollar makes gold less affordable for buyers using foreign currencies.

The ICE U.S. Dollar Index
a gauge of the buck’s value against its main rivals, was off 0.3% at 103.91.

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