Gold settled higher on Friday as U.S. equities slipped, but gains were limited by fears over deflation after Federal Reserve Chair Janet Yellen said U.S. labor markets remain hampered by the effects of the Great Recession.
In a speech at a central banking conference in Jackson Hole, Wyoming, Yellen said the U.S. central bank should move cautiously in determining when interest rates should rise, as economic disruption of the last five years has left millions of workers sidelined, discouraged, or stuck in part-time jobs.
U.S. gold futures for December delivery settled $4.80 lower at $1,280.20 an ounce, down about 2 percent on the week—the biggest drop since the week ended July 18. Spot gold rose 0.2 percent to $1,280 an ounce, not far from a two-month low of $1,273.06 hit on Thursday.
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