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Gold increases as the dollar weakens, but still on course for a fourth consecutive weekly loss

Gold increases as the dollar weakens, but still on course for a fourth consecutive weekly loss
Gold increases as the dollar weakens, but still on course for a fourth consecutive weekly loss

Gold prices remained on course for a fourth straight weekly decline, despite a slight increase on Friday as the dollar declined and expectations of U.S. rate hikes were eased following inflation data. By 9:39 am EDT (1339 GMT), spot gold had risen 0.51%, to $4 046.70 an ounce.

U.S. Gold Futures for August Delivery rose by 0.35%, to $4.061.40 an ounce.

The U.S. Dollar eased off recent highs following the release of the Fed's preferred index on Thursday. The U.S. The Personal Consumption Spending Price Index? grew 4.1% over the past 12 months, which is in line with economists' predictions in a survey. According to CME Group’s FedWatch Tool, traders are pricing in a?60% chance of an increase in U.S. interest rates in September. This is lower than the?64% expectation earlier.

Jim Wyckoff is a market analyst with American Gold Exchange. He said that gold has seen a modest recovery after being under pressure to sell earlier in the week. The appeal of non-yielding gold is reduced by higher interest rates and tighter policy, which tend to increase bond yields?and increase returns from interest-bearing investments. Gold prices fell by 2.6% this week, and spot gold reached a record low of more than seven months.

TD Securities stated in a report that sustained strength in the energy markets may put downward pressure on gold in the months to come. This week, gold?traded at a premium for the first time since a month-and-a-half, after a price adjustment?boosted buying. Meanwhile, demand in China, the largest consumer, remained subdued. Silver spot rose by 0.42%, to $58.1109 an ounce.

Palladium rose 1.25%, or 1.21%, to $1199.25, while platinum gained 0.21%, or $1604.45.

(source: Reuters)