Gold prices posted a weekly gain on Friday, buoyed by a softer dollar and safe-haven demand from escalating tensions in the Middle East, even as US Federal Reserve officials bruised hopes of early rate cuts this year.
Spot gold was up 0.8 percent to $2,040.69 per ounce, and was on track for a 1.4 percent weekly rise.
US gold futures settled 0.9 percent higher at $2,049.4.
The dollar index edged down 0.1 percent and was heading for its first weekly dip in almost two months as investors took a breather from a recent rally built on expectations the Fed would delay rate cuts. US Treasury yields also were down for the week, making greenback-priced bullion less expensive to overseas buyers.
“Gold is up primarily on the fact that the US dollar is a little weaker,” said Bob Haberkorn, senior market strategist at RJO Futures.
“It’s a delicate walk right now in the precious metals market, but there is a lot of safe-haven buying despite the rates being as high as they are.”
Fed Governor Christopher Waller said on Thursday that he was in “no rush” to cut rates, firming investor bets against US interest rate cuts before June.
Most policymakers at the Fed’s last meeting were concerned about the risks of cutting interest rates too soon, minutes showed. – Reuters
