Comex gold futures finished a few cents higher Friday night in New York to notch up a gain of around 1% for the week – the first positive week for a while.
Uncertainty surrounding the outcome of the US Presidential election and the timing of Federal Reserve’s next interest-rate hike helped to lift investment interest despite a stronger greenback.
Comex December gold futures added 20 cents to settle at $US1,267.70 an ounce, rebounding from earlier lows under $US1,262.
The US dollar rose Thursday and Friday against the euro, in particular, in the wake of the European Central Bank’s to leave its monetary policy loose and relaxed.
That saw the Aussie dollar slide sharply over the two days and it fell more than 2 US cents to close the week just above 75 US cents and looking to go lower.
This week’s September quarter inflation data will have a big influence on the value of the Aussie dollar especially if there is another weak reading. But most forecasters see a rate of 0.6% or so quarter on quarter and 1.3% to 1.5% annual.
The consumer price inflation could be a touch higher than expected (as consumer inflation has been in China, NZ, the UK, US and Europe in the past couple of months as energy prices have slowly firmed). Fruit and vegetable prices were also higher in the quarter (especially tomatoes).
Elsewhere on Comex, December silver lost 5.6 cents, or 0.3%, to $US17.493 an ounce, cutting its gain for the week back to around to 0.3%.
December copper fell less than a penny to $US2.089 a pound, to be down about 1% on the week. Copper prices are down nearly 6% since the end of September.
Meanwhile, US oil futures edged higher as well on Friday to be up around 1% for the week amid continuing optimism that OPEC and Russia will reach a firm deal on November 30 to curb output.
Prices have now posted gains for five weeks in a row. December WTI crude on its first full day as a front-month contract, settled at $50.85, up 22 cents, or 0.4%.
In Europe, Brent crude fell around 0.3% for the week and December futures in London added 40 cents, or 0.8%, to settle at $US51.78 a barrel.
And in a further pointer to high inflation (at least in the US), American retail petrol (gas) prices are on the verge of doing something they have done in more than two years: climb above their year-ago levels.
“A long running streak for U.S. consumers is about to end,” said Tom Kloza, global head of energy analysis at the Oil Price Information Service, in a note to clients, and reported by Marketwatch.
“The national U.S. average price of gasoline, as compiled by OPIS for AAA, will soon rise above the year-ago price.” He pointed out that as of Friday, nationwide gas prices have been cheaper than year-ago levels for 831 consecutive days.
On Friday, the average cost for a gallon or regular gasoline was $US2.2295 a gallon, compared with $US2.236 on Oct. 21, 2015, according to data compiled by OPIS for AAA. Mr Kloza reckons the price will rise above where it was a year ago Sunday or Monday this week.
