Weaker Dollar Pushes Gold Prices Higher on Friday

Gold prices rose on Friday due to a weaker US dollar, and were poised for a weekly gain. Spot gold was up 0.7% at $4,379.95 per ounce by 1:40 p.m. EDT (1740 GMT), while US gold futures settled 0.4% higher at $4,437.30.

The decline in the US dollar index, which slipped 0.3%, made greenback-priced bullion more affordable for buyers overseas. This is a supportive factor for gold prices, according to Jim Wyckoff, a market analyst at American Gold Exchange, who noted that 'the lower US dollar index is a friendly outside market that's supporting gold today.'

The FedWatch Tool showed that markets are pricing in a 33% chance of a rate hike in September versus 55% last week, after inflation readings this week were largely in line with expectations. Lower interest rates tend to support non-yielding assets like gold.