Gold settles over $1,312 on oil rally and S&P drop

PROSPECTING GOLD
AP

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.

There will be more stability in gold: analyst
There will be more stability in gold: analyst   

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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