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Home>UPDATE: Gold edges up from a 6-week low

UPDATE: Gold edges up from a 6-week low

UPDATE: Gold edges up from a 6-week low


By Myra P. Saefong and Sara Sjolin, MarketWatch

Metals futures end broadly higher for the session

Gold settled modestly higher Thursday, edging up after notching a six-week low as the U.S. dollar retreated from its highest level in a month.

The greenback, however, held on to a gain week to date, buoyed by expectations that the U.S. Federal Reserve will raise interest rates again this year.

Gold for December delivery added 90 cents, or less than 0.1%, to settle at $1,288.70 an ounce. It settled Wednesday at its lowest since Aug. 16, according to FactSet data.

"Futures and options traders may be running scared of the Fed's sudden claim of getting sober and preparing to raise rates, but private investors in physical gold don't believe it," said Adrian Ash, head of research at BullionVault. "They're using this price drop to rebuild positions after taking profits over the summer."

The ICE Dollar Index , which measures the buck against a basket of six rival currencies, was down 0.3% Thursday, but that's after touching its highest levels since late August.

The dollar has seen overall strength on rising expectations the Fed will raise interest rates in December. A stronger dollar makes it more expensive for holders of other currencies to buy dollar-denominated commodities, such as gold.

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