Gold Set to Mark Best Week in 7 Months as Markets Price in Inflation and End of Fed Hikes

13 October 2023

Gold prices experienced a notable rise on Friday, potentially marking their best week since mid-March, as U.S. bond yields decreased, boosting the allure of the U.S. dollar-backed bullion. Spot gold increased by nearly 1% to $1,886.40 per ounce. A range of factors contributed to this surge, including a fall in U.S. Treasury yields and the dollar, strong U.S. inflation data, and the dovish policy stance of policymakers. Additional influences included safe-haven demand amidst conflict in Israel and evolving inflation data from China, the world’s largest gold consumer. Spot silver also saw a 1.5% climb, positioning it for its first weekly gain in three.

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