Metals Stocks: Gold trades near 2-week peak, on track for first weekly gain this month

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Gold futures edged slightly higher early Friday, as a weaker U.S. dollar has helped the precious metal on a path toward its first weekly gain this month.

December gold

GCZ8, +0.27%

 added $3, or 0.3%, to $1,211.20 an ounce, with the precious metal on pace to book a weekly rise of about 0.9%, representing its first weekly gain for a most-active contract since the period ended Aug. 31, according to FactSet data and based on last Friday’s close. A close at its current level would mark its best since Aug. 29.

Gains for bullion have come as the U.S. dollar has slumped by about 0.9% at 94.48 thus far this week and weakened to a two-week low, as measured by the U.S. ICE Dollar Index

DXY, -0.07%

a gauge of the buck against a half-dozen currencies.

“The weakening of the US dollar is giving bullion a lift, increasing the chances of seeing further recoveries,” wrote Carlo Alberto De Casa, chief analyst at ActivTrades, in a Friday research note.

“The gold price is slowly continuing its recovery, which has brought it close to the resistance placed at $1,210. If it manages to breach this level, the next target is placed at $1,230, while a return below $1,200 would denote fragility,” he wrote.

Meanwhile, December silver

SIZ8, +0.11%

ticked up by less than 0.1% at $14.250 an ounce. The metal is on pace for a weekly gain of 0.6% based on the most-active contract. The September front-month contract settled earlier this week at $14.05, the lowest since January 2016.

Looking ahead, a report on retail sales for August due at 8:30 a.m. Eastern may be a catalyst for price action, with economists polled by MarketWatch forecasting an advance of 0.3% from a rise of 0.5% in July. A report on import prices for August will be released at the same time.

Separately, data on industrial production for August will be released at 9:15 a.m., followed by consumer sentiment for September and business inventories for July, which will both come out at 10 a.m.

Mark DeCambre is MarketWatch’s markets editor. He is based in New York. Follow him on Twitter @mdecambre.

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