Investing.com - Gold futures rallied to the strongest level in almost three weeks on Friday, as the Federal Reserve's decision to keep interest rates unchanged at current levels boosted the appeal of the precious metal.
Gold for December delivery on the Comex division of the New York Mercantile Exchange jumped $20.80, or 1.86%, to end the week at $1,137.80 a troy ounce. Prices hit an intraday peak of $1,141.50, the most since September 1.
For the week, gold prices rallied $30.30, or 3.14%, snapping a three-week losing streak.
The Fed left short-term interest rates unchanged on Thursday, amid concerns over soft inflation and the effects of recent market volatility on the U.S. economy.
The central bank said it wanted to see "some further improvement in the labor market," and be "reasonably confident" that inflation will increase before hiking rates.
A delay in raising interest rates is considered bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.
Gold fell to a five-and-a-half year low of $1,072.30 on July 24 amid speculation the Fed will raise interest rates for the first time since 2006 at some point this year.
The timing of a Fed rate hike has been a constant source of debate in the markets in recent months. Investors are now focusing on the next Fed meeting on October 27-28.
Also on the Comex, silver futures for December delivery tacked on 17.9 cents, or 1.19%, on Friday to settle at $15.16 a troy ounce by close of trade. On the week, silver futures rose 64.4 cents, or 4.58%, the biggest weekly gain in four months.
Elsewhere in metals trading, copper for December delivery plunged 6.6 cents, or 2.69%, on Friday to settle at $2.386 a pound after touching a daily low of $2.372, the lowest level since September 8.
For the week, copper prices lost 4.5 cents, or 2.64%, as the Federal Reserve’s downbeat assessment about the state of the global economy hurt investor sentiment.
Copper futures have been under heavy selling pressure in recent weeks as fears of a China-led global economic slowdown spooked traders and rattled sentiment. Prices of the red metal sank to a six-year low of $2.202 on August 24.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
In the week ahead investors will be focusing on U.S. durable goods data as well as reports on U.S. home sales for further indications on the strength of the economy and the likelihood of a near-term interest rate hike.
Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Tuesday as there is no relevant data on this day.
Monday, September 21
The U.S. is to release a report on existing home sales.
Wednesday, September 23
China is to reveal the preliminary reading of its Caixin manufacturing index.
The euro zone is to publish preliminary data on manufacturing and service sector activity, while European Central Bank President Mario Draghi is to testify on monetary policy before the European Parliament's Economic and Monetary Committee, in Brussels.
Thursday, September 24
The U.S. is to release data on durable goods orders, initial jobless claims and new home sales. Later in the day, Fed Chair Janet Yellen is to speak at an event at the University of Massachusetts.
Friday, September 25
The U.S. is to round up the week with revised data on second quarter economic growth and a revised report on consumer sentiment.