Gold prices inched up on Friday but were set for a weekly decline, as the U.S. dollar and Treasury yields rebounded ahead of Federal Reserve Chair Jerome Powell’s speech that could offer fresh insights on the central bank’s interest rate cuts plans.
Spot gold rose 0.6% to $2,498.38 U.S. per ounce, and U.S. gold futures gained 0.7% to $2,534.40.
After hitting an all-time high of $2,531.60 on Tuesday, bullion has fallen nearly 1% this week, hurt by a bounce in dollar index and benchmark U.S. 10-year yields.
Powell is expected to deliver remarks at the annual central banking conference in Jackson Hole, Wyoming at 10 a.m. EDT.
Fed policymakers on Thursday supported starting rate cuts next month as inflation eases and the labor market cools, though one cautioned against rushing to ease policy.
Traders have fully priced in Fed easing next month, with a 76% chance of a 25-basis-point cut. A low interest rate environment tends to boost non-yielding bullion’s appeal.