Although prices are still going to hit their worst weekly decline in a month, gold futures were up on Friday. Gold for December delivery increased $7.70, or 0.6 percent, to $1,283.20 an ounce. This gain was prior to futures lowest settlement since June 18 on Thursday, due to a decrease in U.S. unemployment benefits claims, triggering concerns that the Federal Reserve will consider the encouraging economy data a sign that it's prepared to handle an interest-rate increase soon, reports Market Watch.
Mohan Mandrekar, an analyst at Bessemer Trust, told The Wall Street Journal, "We do expect rates to rise and the dollar to strengthen, and that's not a conducive background for gold." Bessemer Trust has invested $1.2 billion in commodities.
FactSet data reports that gold prices were dropping 1.9 percent for the week, which would be the largest decline since a 2.1 percent fall for the week ending July 18. Nicholas Johnson, co-portfolio manager at the $25 billion Pimco CommodityPlus Strategy Fund, said that this recent pullback makes gold less expensive compared to other haven assets and more appealing if conflict were to worsen in the Middle East or Ukraine, reports The Wall Street Journal.
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