Gold Heads Towards Gains for the Third Consecutive Week

Gold prices continued on the path to achieving gains for the third consecutive week on Friday, supported by hopes that the Federal Reserve (the U.S. central bank) will halt interest rate hikes following its meeting this month. By 06:15 GMT, spot gold increased by 0.1% to $1,970.69 per ounce, rising 0.7% so far this week. The yellow metal declined on Thursday from a two-month high, influenced by a stronger dollar and rising bond yields following data that showed the U.S. labor market was stronger than expected. Meanwhile, U.S. gold futures rose by 0.1% to $1,972.80 per ounce. Gold prices found support from expectations that the Federal Reserve will raise interest rates for the final time next week as part of its current tightening cycle. Most economists surveyed by Reuters expect the Fed to increase rates by 25 basis points during its meeting on July 25-26. The dollar index fell by 0.1%, but was heading towards a weekly gain, while U.S. Treasury yields increased. A decline in interest rates reduces the opportunity cost of holding non-yielding gold. Among other precious metals, silver in spot transactions rose by 0.3% to $24.82 per ounce, platinum increased by 0.5% to $958.40 per ounce, and palladium climbed by 0.3% to $1,281.61 per ounce.