USA gold for December delivery found its way up 1.4% to $1,359.30 U.S.an ounce.
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Gold headed for the first weekly gain in three as investors turned their attention to the Bank of Japan’s meeting on Friday, with the potential for additional stimulus after the metal got a boost from the Federal Reserve’s statement that reiterated only a gradual tightening of United States policy. Futures prices ended the month with a climb of roughly 2.8% from the settlement of the most-active contract on June 30, according to FactSet data.
For the second quarter, gross domestic product grew at a seasonally adjusted annual rate of 1.2%, the Commerce Department said Friday. Prices have now posted gains for six out of the seven months so far this year.
Spot gold, down initially, reached its highest since July 12 at $1,348.60 an ounce after the US data and was up 0.5 percent at $1,342.20 at 1355 GMT. The dollar index, which measures the greenback against a basket of currencies, was down 0.4 percent at 96.363. Consequently, USD/JPY immediately crashed more than 2.5% in overnight trading, before falling to an intraday-low of 102.12, its lowest level in almost three weeks.
Gold’s premium over silver rose on Friday, but declined for the week as investors reacted to the Federal Reserve’s decision to keep interest rates on hold. Gold is priced in dollars and becomes cheaper to foreign buyers when the US currency weakens.
Gold “has the best chance now to target $1,400”, said Chintan Karnani, chief market analyst at Insignia Consultants.
Meanwhile, September silver SIU6, +0.73% tacked on 14.8 cents, or 0.7%, to 20.34 an ounce.
The exchanged-traded fund iShares Silver Trust SLV, +0.34% was up 0.4%, set for a monthly gain of 8%, while the SPDR Gold Trust GLD, +0.80% was added 0.8%, trading 1.8% higher for the month.
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Gold saw further support as many investors believe that the Federal Reserve lacks the confidence to lift rates too abruptly without further signs of strength in the United States economy. September palladium PAU6, +2.27% traded at $715.90 an ounce, up $17.25, or 2.5%, for the day, trading 19.8% higher on the month.
