Gold Prices set to Gain on Week

Gold prices rose on Friday as the American dollar continued to weaken, and helped put bullion on track for a second straight weekly rise amid cooling bets for a more aggressive monetary policy by the Federal Reserve.

Spot gold was up 0.5% at $1,859.32 U.S. per ounce.

Gold this week has been supported by a moderation somewhat in market expectations from the Fed’s monetary policy for next year, and most importantly the weaker U.S. dollar.

Minutes of the Fed’s May 3-4 policy meeting released on Wednesday highlighted, as the market expected, that most participants favoring additional 50 basis point rate hikes at the June and July meetings.

Higher short-term U.S. interest rates and bond yields raise the opportunity cost of holding bullion, which yields nothing.

Prices for other precious metals included a 2% hike in silver to $22.42 U.S., while platinum hiked 0.7%, to $944.10 U.S.

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