WASHINGTON (dpa-AFX) - Gold futures settled modestly higher on Friday even as the dollar stayed firm amid bets the Federal Reserve will keep rates higher for longer to combat inflation.
Gold attracted safe-haven buying amid concerns higher borrowing costs might result in global economic slowdown.
The dollar index, which climbed to 105.78 in the European session, briefly fell below the flat line around late morning, but recovered subsequently to 105.58, gaining more than 0.5%.
Gold futures for December ended higher by $6.00 at $1,945.60 an ounce.
Silver futures for December ended up $0.157 at $23.844 an ounce, while Copper futures for December settled flat at $3.6960 per pound.
The Fed kept interest rates unchanged earlier this week, but forecast another rate hike before the end of the year as well as keeping rates at elevated levels for longer than previously anticipated.
Other global central banks are also expected to keep interest rates higher for longer to cool price growth.
'Higher-for-longer remains kryptonite for gold but weakening global growth prospects is starting to attract some safe-haven flows towards bullion,' says Edward Moya, Senior Market Analyst at OANDA.
'Gold has shown that the $1900 level was a major line in the sand and now it appears to be poised to consolidate around the $1950 level. For gold to move back above the $2000 level, investors will need to see major dollar weakness which will be driven by evidence that the labor market is breaking,' Moya adds.
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