London — Gold held near six-week highs on Friday though its recent rally appeared to falter as investors awaited US gross domestic product (GDP) data for more clues about the pace of US monetary policy tightening. Stronger than expected growth would leave the US Federal Reserve on track to raise rates, pushing up bond yields and making non-yielding gold less attractive. It would also bolster the dollar, making bullion more expensive for holders of other currencies. Spot gold was flat at $1,258.76 an ounce at 10.18am GMT after touching $1,264.99, the highest since June 15, on Thursday. It was on track to rise for a third week in a row. US gold futures for August delivery were 0.1% lower at $1,258.20. The dollar was slightly weaker and US bond yields slightly higher. The biggest risk to gold prices was a stronger dollar, said Julius Baer analyst Carsten Menke. Gold has risen by about $55 since early July thanks to dollar weakness and short-covering, he said, but "the rally was on a ra...
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