As the Federal Reserve's policy path comes into focus, gold prices rise

Gold prices moved higher on Friday and set for a fifth straight week of gains as markets focused on further clues following the Federal Reserve's announcement of its first rate cut of the year. The Fed had cut its base rate by 25 basis points but warned of persistent inflation, casting doubt on the pace of easing ahead. Spot gold hit a record high of $3,707.40 at one point after the decision, before retreating in volatile trading. "Gold prices are still pretty strong, just pausing a bit after the Fed hikes," said Bob Haberkorn, strategist at RJO futures markets. "The bullish trend remains unchanged, new highs are inevitable, and we could see $4,000 before the end of the year." Spot silver rose more than 2.2 percent and spot platinum rose 1.4 percent. "What I see is that many investors are now turning to platinum and silver because they are cheaper than gold," says Mr. Haberkorn.