BENGALURU/LONDON- Gold prices, aided by China’s stimulus measures, hit their second consecutive weekly gain on Friday on renewed hopes for US interest rate cuts, with silver breaking the $30 barrier to hit an 11-year high.
Spot gold rose 1.5 percent to $2,412.83 per ounce, closing in towards an all-time high of $2,431.29 hit on April 12.
US gold futures settled 1.3 percent higher at $2417.40 per ounce.
“Gold is moving higher despite (an uptick in) the dollar and yields. I think in this instance, China stimulus has helped as we’re also seeing other (base) metals do very well,” said Bart Melek, head of commodity strategies at TD Securities.
The market was lifted after China, a major consumer of industrial metals as well as gold, announced “historic” steps to stabilize the crisis-hit property sector.
Spot gold prices are up over 2 percent so far this week.
Meanwhile, London’s gold price benchmark ended the week at a record high of $2402.60 per troy ounce, the London Bullion Market Association (LBMA) said.
“Ultimately gold is responding to the idea that US inflation is probably under control … any talk of a prolonged period of high interest rates is going to be mitigated,” Melek said.
Traders expect roughly two quarter-point cuts from the Fed this year, with November being the most likely starting point.
Lower interest rates tend to boost non-yielding bullion’s appeal.
