Gold futures are slightly higher Friday morning, rebounding from losses in the previous session, but look set to post a weekly loss amid rising prospects of the Federal Reserve beginning to reduce its bond purchases before the end of this year.
The dollar’s decline and weakness in stock markets contribute to the yellow metal’s modest uptick.
The dollar index, which dropped to 93.05 in the Asian session, has recovered to 93.29 now, but still remains nearly 0.2% down from the previous close.
Gold futures for December are up $2.60 or 0.15% at $1,752.40 an ounce.
Silver futures are down $0.099 or 0.44% at $22.580 an ounce, while Copper futures are lower by $0.0025 or 0.06% at $4.2285 per pound.
The Federal Reserve said while releasing its monetary policy on Wednesday that it would likely start tapering its bond-buying program before the end of this year.
The Fed also hinted at hiking interst rate in 2022, and signaled a series of hikes over the next two years as well.
On Thursday, the Bank of England left its key policy rates and QE unchanged, but opined that the recent price developments appeared to have strengthened the case for a modest tightening of monetary policy.
The material has been provided by InstaForex Company – www.instaforex.com