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Gold Hovers Near Seven-week High

Gold prices hovered near seven-week highs on Friday and were on course to post their best weekly gain in five, as a weaker dollar on the back of falling U.S. Treasury yields lifted the precious metal’s appeal.

Spot gold rose half a percent to 1,772.73 per ounce, while U.S. gold futures were up 0.4 percent at 1,773.60.

The dollar fell against rivals and benchmark U.S. Treasury yields hovered near a one-month low hit in the previous session despite strong economic data from the United States and China.

Earlier this week, Federal Reserve Chairman Jerome Powell reiterated his dovish stance on monetary policy and emphasized that any increase in inflation should be transitory.

Powell also said the Federal Reserve will reduce its bond purchases before it commits to an interest rate increase.

Easy monetary policy tends to weigh on government bond yields, increasing the appeal of non-yielding gold.

The material has been provided by InstaForex Company – www.instaforex.com