Gold edged higher early Friday, buoyed by lower oil prices and a weaker dollar, though it’s little changed for the week. It has recovered most of the ground it lost earlier in the week on the Federal Reserve’s first interest-rate hike in three years.
Investors continue to watch developments in the U.S. war with Iran and the outlook for monetary policy. The Fed increased its benchmark interest rate to 3.75% to 4.00% Wednesday amid concerns about inflation as oil prices have climbed since the start of the war at the end of February.
The central bank indicated that another hikes might be coming this year. Higher interest rates are usually bearish for gold, making the yellow metal a less attractive asset for investment. But Goldman Sachs on kept its forecast for the end of 2027 at $5,400 an ounce even after the rate increase.
December gold futures rose 0.3% Thursday to settle at $4,399.70 an ounce on Comex, and the front-month contract lost 0.2% in the first four days of the week. Bullion rose 9.1% last month after gaining 1.7% in July, its first monthly increase since February, and sliding 12% in June. It decreased 7% in the first half of 2026 after rallying 64% last year. The December contract is currently up $6.5 (+0.15%) an ounce to $4406.20 and the DG spot price is $4366.20.
Wednesday’s vote by Fed policymakers to raise rates was unanimous, and Chair Kevin Warsh said it would help the central bank achieve its goal of 2% U.S. inflation, a rate that has been far exceeded in recent months. Warsh cited a strengthening economy, inflation’s failure to slow and intensifying geopolitical tensions as behind the move. The Fed closely watches inflation and labor market data when setting monetary policy.
More than 57% of the investors tracked by the CME FedWatch Tool are now betting that the Fed will raise interest rates by another 25 basis points in October. Before this week’s rate hike, the Fed had kept interest rates unchanged this year after three previous rate cuts.
The next Fed policy meeting is Oct. 28, six days before the U.S. midterm elections. U.S. President Donald Trump has repeatedly pushed the Fed to cut rates.
December silver futures increased 1.8% Thursday to settle at $66.10 an ounce on Comex, and the front-month contract advanced 1.4% in the first four days of the week. The most-active contract touched a record above $115 in January. Silver climbed 16% last month after sliding 3.6% in July and declining 21% in June. It lost 15% in the first half of 2026 after rising 141% last year. The December contract is currently up $1.010 (+1.53%) an ounce to $67.105 and the DG spot price is $66.50.
Spot palladium fell 0.9% Thursday to $1,293.50 an ounce and lost 1.8% so far this week. Palladium rallied 5.7% last month after adding 5.8% in July and dropping 11% in June. It retreated 25% in the first half of 2026 after rising 74% last year. Currently, the DG spot price is up $27.90 an ounce to $1326.00.
Spot platinum edged up $1.40 Thursday to $1,792.10 an ounce, but has retreated 0.5% this week. Platinum rose 7.5% last month after gaining 6.6% in July and tumbling 19% in June. Platinum slid 23% in the first half of 2026 after increasing 122% in 2025. The DG spot price is currently up $9.20 an ounce to $1804.50.
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