BENGALURU: Gold prices drifted higher on Friday helped by a drop in US Treasury yields and setting the metal on path for a fourth straight week of gains, as investors took stock of the recent inflation data out of the United States.
Spot gold rose 0.5% to $1,798.86 per ounce by 1800 GMT and was headed for a more than 1% weekly rise. US gold futures also settled up 0.5% at $1,815.5.
“Currently the gold market is seeing some short-covering and is supported by lower yields,” said Bart Melek, head of commodity strategy at TD Securities.
US Treasury yields dipped after a volatile week as investors evaluated whether an apparent slowdown in inflation increases could reduce the speed of Federal Reserve interest rate hikes. Data released earlier this week indicated that inflation in the US has cooled down, following which market participants toned down expectations of an aggressive rate hike by the Fed. However, recent Fed commentary continues to be hawkish and have stopped the metal from breaking above the $1,800 level.
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