Gold was pushed and pulled in two directions today, but nevertheless ended the week just off 3-1/2 month highs. Indeed, the yellow precious metal eased on Friday as a recovering dollar tugged on prices and investors decided to take their portfolios into the weekend a little lighter in gold. There was also minor profit taking. On the other hand, doubts over whether the Fed will press ahead with a U.S. rate rise in either October or December kept the metal on track for its second consecutive weekly rise. We are also facing a couple of Federal Reserve speeches next week. Governor Lael Brainard speaks at 10 AM on Monday, while Governor Jerome Powell speaks at 8:15 AM on Tuesday; Fed Chair Janet Yellen speaks on Tuesday morning. "There is still high uncertainty in the market about when the Fed will raise rates," Commerzbank analyst Daniel Briesemann said. "Until we have seen the first interest rate hike, or at least the announcement of it, gold should still be under pressure." Gold also lost support in the physical market, where consumers’ buying interest dropped due to the recent price rally. This was particularly evident on the Shanghai exchange. Palladium slipped today, as well, with some selling distinctly attributable to profit taking. In other markets, crude oil nudged up on news of the seventh straight week of drops in the U.S. rig count. U.S. equities were indecisive on Friday, leading to modest gains across the three indices. The Dow was held back by down trending choppy trade in transports, which affected Caterpillar and other heavy vehicle manufacturers. NASDAQ was buffeted by bellwether Apple as well as by the biotech component, which has been in a volatile phase.
Wishing you as always, good trading,