Gold prices edged higher on Friday as lower oil prices and a weaker U.S. dollar provided support, while investors continued to monitor developments in the Middle East and signals from major central banks.
Spot gold rose 0.3% to $4,352.60 per ounce, while U.S. gold futures for December delivery slipped 0.2% to $4,391.60 per ounce.
The rise in gold came as oil prices fell by around 1% and the U.S. dollar extended its decline from recent highs. A weaker dollar makes gold less expensive for buyers using other currencies, which can help boost demand.
Gold’s gains were limited by expectations of tighter monetary policy. The Federal Reserve recently raised interest rates and indicated that additional increases could still be possible. Higher interest rates generally reduce the appeal of gold because it does not generate interest or yield.
Meanwhile, the Bank of England left interest rates unchanged but warned that future rate hikes remain possible. Investors are also waiting for the Bank of Japan’s latest policy decision.
In the United States, new unemployment claims unexpectedly declined last week, although economists noted that the figures may have been influenced by seasonal factors related to the Labor Day holiday.
Among other precious metals, silver gained 0.7% to $65.64 per ounce, platinum climbed 0.9% to $1,785.55 per ounce, and palladium added 0.1% to reach $1,292.47 per ounce.