Gold Prices Near One-Week High Amid Weaker US Dollar and Lower Treasury Yields
Gold prices rose in European trading on Friday, extending gains for a third consecutive day and nearing their highest level in a week. The precious metal's advance was supported by a weaker US dollar and lower Treasury yields ahead of the release of the US employment report for August.
The US dollar index fell less than 0.1% on Friday, extending losses for a third consecutive session. A weaker US currency makes dollar-denominated gold more attractive to buyers holding other currencies.
Federal Reserve Governor Christopher Waller said he was leaning toward keeping interest rates unchanged at this month's policy meeting if upcoming inflation data show that price pressures are continuing to ease. This reduced expectations for US interest rate hikes this year, adding downward pressure on the US dollar and supporting gold prices.