Gold settles over $1,312 on oil rally and S&P drop
Gold rose on Friday on an oil rally and falling U.S. equities, with bullion on track to rise for a second consecutive week due to uncertainty over when the U.S. Federal Reserve will scale back its stimulus.
Speculation the central bank could start tapering its $85 billion monthly bond purchases as soon as next month knocked gold to a three-week low earlier this week. But there was no consensus among Fed policymakers about the exact timing on when to end the program.
Gold reversed earlier losses as U.S. equities fell 0.6 percent and were set for their worst week since June. The S&P 500 index was off 0.3 percent, driving safe-haven buying of bullion. Investors found few reasons to buy with equity prices near record levels.
Spot gold was flat at $1,312 an ounce. For the week, gold is also up 0.2 percent and set for its fourth weekly gain in the past 5 weeks. U.S. gold futures for December delivery settled at $1,312.30, up $2.30 on the day.
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