Gold prices surged on Friday following two days of losses, as the dollar and Treasury yields fell sharply after Federal Reserve Chair Jerome Powell confirmed market expectations that the central bank is ready to begin cutting interest rates. This led to a decline in the dollar and bond yields, while Comex gold for December delivery rose by US$32 to US$2,548.70 per ounce, approaching Tuesday's record close of US$2,550.60 per ounce.
In a speech at the central bank's annual Jackson Hole, Wyoming, conference, Powell indicated that the Fed is prepared to start lowering interest rates from their current 23-year high due to a slowing labour market.
"The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks," Powell said.
Following Powell's comments, the dollar dropped sharply, with the ICE dollar index last recorded down 0.83 points at 100.68, marking its lowest level this year.
Treasury yields also decreased, with the US two-year note last seen at 3.926%, down 9.0 basis points, while the yield on the 10-year note fell 5.3 basis points to 3.804%.
Spot gold traded around US$2,507 an ounce. Comex silver jumped 2.8% to US$29.86 an ounce, and Comex copper increased by 1.3% to US$4.20 a pound.
In Singapore, the price of iron ore edged up by just over 3% to end the week at US$95.75 a tonne for 62% Fe fines, up from US$92.28 a tonne the week before.
Australian prime coking coal ended the week at US$198 a tonne, slightly down over the week.
