Gold Gains on Softening Oil Prices Ahead of Key US Data Release
Gold prices rose on Friday, but were headed for a weekly loss, as oil slipped from multi-month highs and assuaged some inflationary concerns. Investors awaited key U.S. economic data for clues on the Federal Reserve's monetary policy path.
Spot gold rose 0.6% to $4,339.46 per ounce by 1105 GMT. It was down nearly 3% for the week so far. U.S. gold futures dropped 0.6% to $4,381.30.
Ole Hansen, head of commodity strategy at Saxo Bank, attributed the precious metal's gain to 'softer oil prices on hopes a Monday meeting between GCC ministers and Iran can yield some results regarding the passage of oil through the Strait.' Buyers also emerged ahead of a key support area around $4,300.
Oil prices were set to end the week above $100 a barrel. Higher oil prices stoke inflation fears and bolster expectations of the Fed raising interest rates. While gold is typically seen as an inflation hedge, higher interest rates diminish its appeal.