London — Gold was set for its biggest weekly gain in two months on Friday as a surging euro pushed the dollar to its weakest since June 2016, making bullion cheaper for holders of other currencies. Bond yields also fell after European Central Bank president Mario Draghi said on Thursday that the Bank was in no rush to scale back its asset purchase programme. Lower yields help gold prices by reducing the opportunity cost of holding non-yielding bullion. Spot gold was up 0.6% at $1,251.61 an ounce at 1.29pm GMT, after earlier touching $1,252.07, the highest since June 29. It was on track for a weekly gain of 1.8%. US gold futures for August delivery were 0.4% higher at $1,250.90 an ounce. While gold was benefiting from the dollar’s weakness against the euro and the move in yields, its gains would be limited by expected interest rate rises by the US Federal Reserve and it would remain in a $1,200 to $1,250 range, ABN AMRO analyst Georgette Boele said. Gold is highly sensitive to rising...
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