Gold prices for December delivery rose 60.0 cents to $1,772.70 an ounce on the Comex in New York, its best settlement price since February 28. Gold traded as high as $1,780.20 an ounce. For the week, gold prices gained $32.20 or 1.9%.
"When multiple major central banks are coordinating their effort in printing more money and engaging in stimulus measures, that has to be overtly bullish for gold," Reuters quoted Adam Sarhan, chief executive of Sarhan Capital.
The Fed said Thursday that it would purchase $40 billion in mortgage-backed securities every month until the employment picture improved. The news bolstered inflation expectations, and gold is traditionally purchased as a hedge against inflation.
Gold Prices Expected Higher Next Week september 17-21 2012
Analysts, traders and bullion dealers remain bullish for gold prices next week, based on weekly precious metal surveys.
"In the Kitco News Gold Survey, out of 33 participants, 29 responded this week. Of those 29 participants, 24 see prices up, while one sees prices down, and four are neutral or see prices moving sideways," reports Kitco News.
"After the Fed announced it will buy $40 billion in mortgage-backed securities monthly until the labor market improves, most participants see that as supportive for the yellow metal…
Others noted that gold broke out of its recent trading range with this week’s sharp move higher and they expect momentum will continue to push gold up, with a possibility of testing $1,800 an ounce shortly."
The weekly gold survey from Bloomberg had 20 participants voting bullish, 7 bearish and 2 neutral.
Gold continues as the third best performing precious metal this year. It has gained 13.1% in 2012.
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