Gold continued its weekly rise for the third week, as signs of a easing in inflation triggered reassessments of central banks’ interest rate paths.
Gold is preparing to close the third consecutive week with rising.
Spot gold is trading at $1,967 an ounce.
This picture was somewhat overshadowed by data highlighting the resilience of the labor market as US jobless claims fell to a two-month low.
Bond yields eased after Thursday’s rally as investors priced in the likelihood of further rate hikes beyond next week’s Fed meeting.
Spot gold has risen nearly 3 percent this month amid interest rate speculation and a weaker dollar, though that caused the precious metal to retrace from its two-month intraday high on Thursday, closing the session down 0.4 percent.
A higher price scenario still outweighs gold as the Fed nears the end of tightening, RBC Capital Markets Strategist Christopher Louney said in a note. “But investors may become less and less concerned about the risks, which will reduce the attractiveness of spot gold as a hedge asset.”