Gold Price Rises. Watch This Level for a Floor.

Gold prices have tanked over the past two weeks, but the precious metal now seems to have settled at the $4,000 an ounce level. (Christopher Furlong/Getty Images)

Key Points

• Gold futures rose 0.2% to $4,026 an ounce, trading 9% below its record high from earlier this month.
• Despite a recent selloff, gold has gained 53% for the year, driven by central bank purchases and lower interest rate expectations.
• Gold-mining stocks Newmont, Agnico Eagle Mines, and Barrick Mining saw declines of 0.6%, 0.3%, and 0.7% respectively.

Gold prices were edging higher on Friday, raising hopes that the yellow metal has found a floor following a torrid selloff.

The most actively-traded futures contract climbed 0.5% to $4,038 an ounce, to trade about 9% off the record high it hit earlier this month.

Created with Highcharts 9.0.1Gold futures per ounceSource: FactSet

Created with Highcharts 9.0.1Oct. 21Oct. 313,8503,9003,9504,0004,0504,1004,1504,2004,2504,3004,3504,400$4,450

Bullion prices dropped sharply last week, with investors seemingly deciding it was a good time to sell after a stellar run. Even after the selloff, gold is still up 53% for the year, powered higher by a central-bank buying spree as well as the prospect of lower interest rates, which make it more appealing relative to safe assets that have yields, like bonds and savings accounts.

The question is whether the reversal gathers pace, or if gold will now steady at around the $4,000-an-ounce mark. Investors will be keeping a close eye on the Federal Reserve, particularly after Chair Jerome Powell said earlier this week that a December rate cut was “not a foregone conclusion.”

Even though bullion futures were holding on steady on Friday, gold-mining stocks opened in the red. Newmont, Agnico Eagle Mines, and Barrick Mining were each down 0.6% in early trading. The S&P 500 was 0.5% higher.

Write to George Glover at george.glover@dowjones.com