Investing.com - Gold futures ended Friday’s session at the highest level in more than two months, amid indications the Federal Reserve will keep interest rates at record-low levels for a considerable time and as investors continued to monitor violence in Iraq.
On the Comex division of the New York Mercantile Exchange, gold for August delivery rose to a session high of $1,322.50 a troy ounce, the most since April 15, before coming off the highs to settle at $1,316.60, up 0.19%, or $2.50.
Gold prices were likely to find support at $1,276.20, the low from June 19 and resistance at $1,328.40, the high from April 15.
On the week, Comex gold advanced 3.22%, or $42.50 an ounce, the biggest weekly gain in three months.
On Thursday, the precious metal rallied 3.25%, or $41.40, after Federal Reserve Chair Janet Yellen signaled the central bank was in no hurry to raise interest rates.
The Fed cut its bond purchases by $10 billion a month, to $35 billion, saying there was "sufficient underlying strength" in the U.S. economy to continue tapering.
Despite this, the Fed also lowered its forecast for growth this year to a range of 2.1% to 2.3% from 2.8 to 3.0% previously, due to "unexpected contractions" in the first quarter as a result of the unusually harsh winter.
The Fed acknowledged the recent increases in inflation and drop in unemployment, but Chair Janet Yellen said no formula was in place for when interest rates would start to rise.
Meanwhile, gold traders monitored events in Iraq, as the conflict between Sunni Islamist insurgents and Iraqi army forces continued on Friday.
U.S. President Barack Obama said Thursday he would send 300 members of the special-operations forces to Iraq and added he was prepared to take "targeted" military action later if deemed necessary.
In the coming week, the U.S. is to release data on consumer confidence, durable goods orders and home sales.
Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers significantly increased their bullish bets in gold futures in the week ending June 17.
Net longs totaled 66,572 contracts, up 23% from net longs of 51,280 in the preceding week.
Also on the Comex, silver for July delivery advanced 1.46%, or 30.1 cents, on Friday to settle the week at $20.94 a troy ounce, the most since March 18.
Futures rallied 4.4%, or 87 cents, on Thursday, as a broadly weaker U.S. dollar and higher gold prices boosted demand.
The July silver futures contract surged 6.16%, or $1.29, on the week, the biggest weekly gain in almost four months.
Data from the CFTC showed that net silver longs totaled 5,134 contracts as of last week, compared to net shorts of 6,123 contracts in the preceding week.
Elsewhere in metals trading, copper for July delivery tacked on 1.4%, or 4.3 cents, on Friday to settle the week at $3.121 a pound, the highest level since June 4.
On the week, Comex copper prices rose 2.94%, or 9.2 cents a pound.
According to the CFTC, net copper shots totaled 313 contracts as of last week, compared to net longs of 5,107 in the preceding week.