Gold was heading for its biggest weekly decline in nearly two months.
Several Federal Reserve Bank presidents revealed they had a favorable outlook on the economy and supported gradual adjustments in short-term interest rates, Proactive Investors reported.
If the Fed does go ahead and raise interest rates, the dollar will likely gain strength and weigh down gold as the two generally move in opposite directions.
Shortly before the UK market close, gold was up $4 to $1,267, silver was also marginally up at $17.00, while platinum was down $6 to $1,039.
Africa-focused Acacia Mining PLC gained ground on Friday as heavyweight broker Credit Suisse repeated it’s ‘outperform’ rating on the shares.
The broker also lifted its target price for the mining company by more than 25%, to 380p from 300p.
“Many investors are uncomfortable with the premium multiples that many global gold companies trade on. Acacia is an exception, trading at a low multiple and a discount to our NPV due to its limited track record and a major shareholder overhang,” noted analyst Conor Rowley.
Barrick holds a 64% in the Africa-focused miner, a stake Rowley believes could be sold down over the coming year.
“A large stake sale into the market or to a strategic investor could ultimately be positive for the shares as it would increase the free float and liquidity and could make Acacia a take-out candidate,” he said.
Gold prices have risen nearly 20% since January 1, making the opening months of this year the best time to be a gold bug in three decades. The rise was driven by fears of a recession that sent investors running away from equities into the perceived safety of the yen, government bonds and gold.
