Gold Price Lower on Day, But Up on Week
New York (Sept 26) Gold futures took a hit Friday, finishing lower after the U.S. Federal Reserve's Janet Yellen said she expects an interest-rate hike in 2015.
But prices registered a 0.6% weekly in the wake of a rally a day earlier that jolted prices to a five-week high.
Palladium prices, meanwhile, saw their biggest gain in almost four years, buoyed by increased demand prospects in the wake of the Volkswagen scandal.
December gold fell $8.20 , or 0.7%, to $1,145.60 U.S. an ounce on Comex, for a weekly gain of 0.7%. December silver shed two cents , or 0.1%, to $15.11 U.S. an ounce, down 0.3% on the week.
Fed Chairwoman Yellen said Thursday after the U.S. markets closed that she anticipates "an initial increase in the federal-funds rate later this year, followed by a gradual pace of tightening thereafter."
Analysts have said that higher interest rates can hurt gold because it doesn't pay interest, making it a less attractive investment. Plus, higher rates lift the dollar and a stronger greenback can weigh on dollar-denominated commodities as they become pricier for holders of other currencies. The dollar edged higher Friday.
Gold prices had climbed on Wednesday and Thursday thanks in part to safe-haven demand as stocks and other riskier assets slumped. On Friday, U.S. stocks were mostly higher.
Rounding out action on Comex Friday, December copper shed 1.9 cents , or 0.8%, to $2.284 U.S. a pound, losing 4.3% on the week. October platinum ended $4.70 , or 0.5%, lower at $951.10 U.S. an ounce, for a weekly loss of 3.4%.
December palladium rose $11.15 , or 1.7%, to $667.60 U.S. an ounce, jumping 9.3% for the week for the largest weekly gain since December 2011.