Business · Markets · 2 hrs ago
Gold rises to a one-week high after recent two-month low
Gold prices rose for a second day on Friday, reaching their highest level in a week.
The rise followed a fall to a two-month low earlier in the week.
Buyers stepped in after the price drop, while traders considered whether the US Federal Reserve would raise interest rates again.
A stronger US dollar and higher Treasury bond yields had weighed on gold earlier, because gold does not pay interest.
The spot price rose 1.5% to $4,194.36 an ounce, and gold futures for December delivery gained 1.4% to $4,216.30.
A Federal Reserve official said rates would need to rise again to bring inflation back to the bank’s 2% target.
The outlook for gold remains uncertain, with further rate increases and continued public-sector buying both already expected by some market participants.
Gold rose for a second straight session on Friday, reaching its highest level in a week.
Spot gold gained 1.5% to $4,194.36 an ounce and rose 1.3% over the week.
The rise followed a drop to a two-month low earlier in the week, prompting bargain buying.
Traders were assessing the prospect of further US Federal Reserve interest-rate increases.
- Who
- Gold prices rose. Traders were assessing the likelihood of further US Federal Reserve rate increases.
- What
- Spot gold rose 1.5% to $4,194.36 an ounce, its highest level in a week.
- When
- Friday; the report was published on October 12, 2026.
- Where
- Not stated
- Why
- Bargain buying followed gold’s fall to a two-month low earlier in the week, while traders weighed the prospect of further Fed rate increases.
This story does not have two clearly opposing sides.
bargain hunting at low prices, as a floor has been consolidating in the $4,000 region
A further rate increase by the Fed could arguably already be priced in, but so is the expectation that net public-sector buying will continue. Without any unexpected event, I find it difficult to imagine gold seeing a significant rise
the US central bank will have to raise interest rates again for inflation to return to its 2% target
Gold fell to its lowest level in two months as the dollar strengthened and US Treasury yields rose.
St. Louis Fed President Alberto Musalem said the central bank would have to raise interest rates again to bring inflation back to its 2% target.
Gold rose for a second consecutive session, reaching its highest level in a week.
- Spot gold
- Rose 1.5% to $4,194.36 an ounce
- Weekly change
- Gain of 1.3%
- US gold futures
- December contract rose 1.4% to close at $4,216.30
- Recent low
- Two-month low reached Wednesday
- Inflation target
- 2%
Sources
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