By Ira Iosebashvili
Gold prices rose Friday, buoyed by comments from the Federal
Reserve earlier in the week that suggested the central bank is in
no hurry to raise U.S. interest rates from rock-bottom levels.
Gold for February delivery, the most actively traded contract,
was recently up $3.80, or 0.3%, at $1,196.80 a troy ounce on the
Comex division of the New York Mercantile Exchange.
On Wednesday, the Fed left unchanged the part of its postmeeting
statement saying rates would remain low for a "considerable time,"
a phrase many investors expected the central bank to discard as the
U.S. economy continues to grow. That was good news for gold, which
pays its holders nothing and struggles to compete with
yield-bearing investments in times of rising interest rates.
Gains for the precious metal, however, were capped by a stronger
dollar and big gains in global stock markets. Gold, which is priced
in dollars, becomes more expensive to foreign investors when the
buck appreciates. Rising stock markets also tend to draw money away
from gold.
"The (gold) market feels tired, and traders are reluctant to
take unnecessary exposure into the weekend," said Peter Hug, global
trading director at Kitco Metals, in a note to investors.
Other precious metals climbed along with gold. Palladium was up
0.4% to $795.05 a troy ounce, while platinum rose 0.1% to $1,198.30
a troy ounce.
Write to Ira Iosebashvili at ira.iosebashvili@wsj.com