Gold futures rose Friday, finding support as a surge by the U.S. dollar relented.
Gold for June delivery GC00, +1.19% GCM22, +1.19% rose $26, or 1.4%, to $1,917.30 an ounce on Comex, putting the yellow metal on track for a 0.9% weekly fall and a 1.9% monthly decline after briefly topping the $2,000 level on April 18. July silver SIN22, +0.36% rose 13.4 cents, or 0.6%, to $23.315 an ounce.
“The price of gold was crushed this week with the dollar rising strongly, which we think may be attributed to a steep selloff in the equity markets,” said Peter Cardillo, chief market economist at Spartan Capital Securities, in a note.
The ICE U.S. Dollar Index DXY, -0.41%, a measure of the currency against a basket of six major rivals, was down 0.5% on Friday, a day after hitting a five-year high. The index remains up 4.9% in April.
“From a technical perspective, the market has undergone a serious setback. While the war and inflation factors make a solid case for gold to advance to new highs, the above combination we mentioned seems to be a depressing factor for the metal,” he wrote.
Despite the technical damage, the longer-term outlook remains positive, Cardillo said. “We would take advantage of the recent decline and add to long-term positions,” he wrote.
In other metals trade, July copper HGN22, +0.37% rose 0.2% to $4.442 a pound. July platinum PLN22, +1.37% was up 1.3% at $922.90 an ounce, while June palladium PAM22, +2.37% rose 2.4% to $2,262.50 an ounce.
