Gold ends higher Friday to score fourth week in a row of gains, the most since December

Price action

• Gold contracts expiring in December
  GCZ22,
  +0.55%
  rose $8.30, or 0.5%, to settle at $1,815.50 per ounce on Comex, with the most-active contract sweeping to a fourth straight weekly advance, its longest run since Dec. 31, 2021, according to Dow Jones Market Data.

• Silver contracts expiring in September
  SIU22,
  +2.04%
  gained 35 cents, or 1.7%, to close at $20.70 per ounce.

• Palladium contracts expiring in September
  PAU22,
  -2.73%
  fell $69, or 3%, to $2,219.40 per ounce, while platinum contracts expiring in October
  PLV22,
  +0.24%
  rose fractionally to $957.40 per ounce.

• Copper contracts expiring in September
  HGU22,
  -0.86%
  shed 4 cents, or 1%, to end at $3.67 per pound.

What analysts said

Gold booked another weekly gain, even as the dollar climbed Friday.

“Rising real rates and a strengthening US dollar
DXY,
+0.54%
created formidable headwinds for gold in the first half of the year, offsetting tailwinds from soaring inflation and heightened geopolitical risks,” BCA Research analysts wrote in a Friday client note.

However, with the dollar’s 3% drop since a mid-July top, easing U.S. inflation fears on Wall Street and falling 10-year TIPS yields, gold prices gained 5.7% in the past three weeks, according to the BCA team, noting the continued appeal of safe-haven assets given still extremely elevated geopolitical risks.

“Gold will continue advancing as long as the recent trends in the dollar and real rates continue,” they said.

The most-active gold contract clinched a fourth week in a row of gains, its longest weekly stretch of wins since Dec. 31, 2021, according to Dow Jones Market Data.

Still, the precious metal’s upside potential could be capped by the Federal Reserve, according to Rupert Rowling, a market analyst at Kinesis Money.

Looking ahead, investors will be awaiting the release of the Federal Open Market Committee’s minutes, expected to be released next Wednesday.

U.S. stocks also rallied Friday, putting the big three benchmarks on pace for strong weekly gains. The S&P 500 index
SPX,
+1.56%
was up 1.2% on Friday, heading for a 2.7% weekly advance, according to FactSet.