LONDON – Gold prices rose above the key psychological level of $1,800 on Friday, supported by safe-haven demand and a dip in the dollar ahead of a speech by the US central bank chief that will be scanned for cues on stimulus tapering.
Spot gold rose 0.6% to $1,802.39 per ounce by 0647 GMT. The metal stayed above $1,800 for most of the seven months to February this year, but has failed to sustain any break above that level since then. Prices are, however, up about 1.3% for the week, the biggest weekly gain in over three months.
U.S. gold futures rose 0.7% to $1,807.00, Reuters reported.
The dollar index dipped 0.1%, boosting gold’s appeal for holders of other currencies. The greenback was also headed for a weekly decline.
“Safe-haven buying has come from rising geopolitical tensions in Afghanistan. There are some concerns about further escalation there,” ANZ analyst Daniel Hynes said.
U.S. forces helping to evacuate Afghans desperate to flee Taliban rule braced for more attacks after an Islamic State suicide bomber killed 85 people, including 13 U.S. soldiers outside the gates of Kabul airport.
Investors are now waiting for U.S. Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole, Wyoming, symposium at 14:00 GMT for any hints about when the Fed will begin tapering its asset purchasing programme.
“What we are looking for here is not a policy change … The Fed will set the stage for a tapering announcement perhaps next month,” said DailyFX currency strategist Ilya Spivak.
