Gold headed for the first weekly advance in four as mounting economic headwinds and monetary easing stayed in focus after this week's mixed policy messages from the Federal Reserve. Palladium rallied to record.
Gold has advanced 17% this year as global conditions worsened and central banks around the world eased policy. Many bullion-watchers are forecasting longer-term gains as headwinds including U.S.-China trade tensions weigh on the world economy and pile on pressure for more cuts in borrowing costs. Lower rates make gold more attractive versus other assets that pay interest.
Spot gold advanced as much as 0.5% to $1,506.91 an ounce, and traded at $1,504.02 at 7:58 a.m. in London. That's up 1% this week, set for the best showing since the period to Aug. 16. Holdings in bullion-backed exchange-traded funds expanded every day this week to Thursday, Bloomberg data show.
Spot palladium jumped as much as 1.7% to a record $1,646.79 an ounce, with the metal set for a seventh week of gains, the best run since 2012. Silver also headed for a weekly advance, rising 2.7% after two weeks of losses.
Source : Bloomberg