Gold prices rose on Friday, recovering a measure of recent losses as the Bank of Japan caught markets off-guard with some hawkish signals, although strength in the dollar limited the appeal of bullion.
Copper prices also rose on Friday, marking a stronger recovery than gold as the diminished prospect of a U.S. recession boosted the red metal. Copper also benefited from speculation over more Chinese stimulus.
Markets turned somewhat risk-averse after the Bank of Japan signaled a more flexible approach to its yield curve control policy, heralding an eventual pivot away from the bank’s ultra-dovish stance.
While the move points to more eventual pressure on gold, the near-term shock from the BOJ saw markets seeking some safe havens.
Spot gold rose 0.3% to $1,951.49 an ounce, while gold futures expiring in August rose 0.2% to $1,950.15 an ounce by 01:21 ET (05:21 GMT).
