Gold Rebounds After Biggest Loss in 15 Months Lures Investors
(Bloomberg) -- Gold advanced following its biggest weekly decline in 15 months, helped by a drop in the dollar and a boost from exchange-traded fund investors.
Holdings in gold-backed ETFs rose the most in three months on Friday, according to an initial tally by Bloomberg. A gauge of the dollar headed for its first drop in seven sessions, lifting the appeal of gold as an alternative asset.
Prices slid last week after the Federal Reserve signaled it may tighten monetary policy sooner than many economists expected, diminishing demand for non-interest-bearing bullion. The rout made prices more attractive for many investors, according to Rhona O’Connell, an analyst at StoneX.
“Technically, gold was massively oversold, which would bring in the professionals, and retail interest in southeast Asia had been picking up on an underlying basis already,” O’Connell said.
Spot gold rose 1.1% to $1,783.22 an ounce at 1:49 p.m. in New York. Prices fell 6% last week, the most since March 2020. Futures for August delivery on the Comex rose 0.8% to settle at $1,782.90. Spot silver, palladium and platinum rose.
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