London — Gold prices rose on Friday, helped by a weaker dollar and political tumult in the US that fueled demand for bullion as a safe place to park assets. Price rises, however, were limited by expectations that the US Federal Reserve will raise interest rates next week, and gold was set to end the week largely unchanged. A weaker dollar makes gold cheaper for users of other currencies, helping lift prices. Higher interest rates, however, hurt bullion because they push up bond yields, making non-yielding gold less attractive, and tend to strengthen the dollar. Spot gold was up 0.3% at $1,319.67 an ounce at 12.39pm GMT, but on track to end the week down 0.3%. Gold has traded within a range between $1,315 and $1,335 since late February. The dollar has also moved sideways over that period. US gold futures for April delivery were 0.1% higher at $1,319.30 an ounce. Interest in gold has been fanned by US policy uncertainty after the departure of former US secretary of state Rex Tillerson...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.