2024-02-23T06:22:41+00:00
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/ Gold prices rose on Friday and are heading towards achieving the first weekly increase in three weeks, as the weaker US currency rose broadly. The dollar and rising tensions in the Middle East boosted the bullion’s appeal.
Spot gold was up 0.1 percent at $2,025.7 an ounce by 0411 GMT, up 0.7 percent so far this week. U.S. gold futures were up 0.2 percent at $2,035.3 an ounce.
Tensions have been rising in the Middle East as Iran-aligned Houthi rebels in Yemen claimed responsibility for an attack on a UK-owned cargo ship and targeted the Israeli port and resort of Eilat with ballistic missiles and drones.
Meanwhile, the dollar index (.DXY) is headed for its first weekly decline in nearly two months, making bullion priced in the greenback less expensive for foreign buyers.
However, recent data showing stronger-than-expected U.S. GDP growth was strong. Consumer and producer prices dashed hopes of an early rate cut by the Federal Reserve (the U.S. central bank) and kept bullion gains in check.
Markets are currently pricing in a 62% chance of a Fed rate cut in June, according to the CME Fed Watch tool, opens in a new tab. Lower interest rates make holding non-yielding bullion more attractive.
Spot platinum fell 0.4% to $898.05 an ounce, while palladium fell 0.2% to $965.69. Silver gained 0.2% to $22.78 an ounce, but is down 2.6% so far this week.