Gold Climbs Higher as U.S. Government Nears Shutdown
On Friday, gold (NYSEARCA:GLD) futures for December — the most active contract — increased $15.10 to close at $1,339.20 per ounce, while silver (NYSEARCA:SLV) futures edged 7 cents higher to finish at $21.83.
Both precious metals received buying support as the U.S. Dollar Index, which compares the greenback in a basket against six other flat currencies, declined to its lowest point of the week.
David Rodriguez, Quantitative Strategist at DailyFX, notes that, “There was neither special rhyme nor reason behind Dollar weakness except to note that US bond yields and overall interest rates likewise fell noticeably on the session. It’s telling that the US currency continues to hold above the lows set versus the Euro and Japanese Yen following the recent US Federal Reserve policy announcement. The overall trend favors Dollar weakness, but traders want to see the Fed’s next steps before pushing the currency to fresh lows.”