Gold heads for first weekly gain in three as Fed hurts dollar
Gold on course for its first weekly gain since February as this week’s cautious message on interest rates from the US Federal Reserve leaves the dollar at five-week lows
London — Gold rose on Friday and was on course for its first weekly gain since February as this week’s cautious message on interest rates from the US Federal Reserve left the dollar at five-week lows, making bullion cheaper for holders of other currencies. The Fed raised US rates on Wednesday, as expected, but its earlier forecast of three rate increases this year remained unchanged, disappointing some investors who had hoped for hints of a possible fourth hike in 2017. Spot gold was up 0.3% at $1,230.46 an ounce by 3.28pm GMT, taking this week’s gain to 2.2%. On Thursday the metal hit $1,233.13, its highest since March 6. US gold futures were 0.3% higher at $1,230.40. "There is momentum as people start to look again how far they can push gold higher," said Georgette Boele at ABN AMRO. The dollar had hit a ceiling and would fall further in the near term, she said. US President Donald Trump’s failure so far to push through promised economic stimulus measures may have influenced the F...
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