Gold futures moved lower in Friday dealings but after six consecutive session gains, stayed on track to tally a third weekly climb.
Prices on Thursday settled at their highest in more than four months, extend a streak of daily gains to the longest since July 2020.
Growing uncertainty surrounding the Federal Reserves course of action over the coming months and how that will affect inflation and U.S. stock market levels, have helped to support gold prices, said Jeff Klearman, portfolio manager at GraniteShares, which offers the GraniteShares Gold Trust.
The U.S. central bank has repeatedly stated it will keep rates near zero for some time tightening monetary policy, if necessary, by first scaling back its Treasury and mortgage backed securities buyback program, he told MarketWatch. Concerns the Fed may need to raise rates sooner than later because of higherthanexpected inflation has unsettled stock markets, increasing investor desire for gold as a haven investment.
Along those same lines, the rapid and sharp decline of bitcoin and other cryptocurrencies affected by the same uncertainty plaguing U.S. stock markets, may have caused cryptocurrency investors to lose faith in cryptocurrencies as a gold replacement and move directly into gold as a haven investment, Klearman said.
Meanwhile, strength in the U.S. dollar also contributed to golds overall gains, he said. The ICE U.S. Dollar Index trades more than 1 lower for the month and down over 3 for the quarter.