Gold prices rise as the dollar stalls on fears of US government shutdown
London — Gold prices rose half a percent on Friday as the dollar laboured near a three-year low amid heightened fears of a US government shutdown, but the precious metal was still on track for its first weekly drop in six. The US dollar fell against a basket of currencies after legislation to stave off an imminent federal government shutdown encountered obstacles in the US Senate late on Thursday. A weak dollar makes dollar-priced gold cheaper for non US investors. Spot gold was up 0.6% at $1,335.45 an ounce at 11.30am GMT, on track for a weekly drop of 0.3%, having fallen from four-month highs hit on Monday. US gold futures were up 0.6% at $1,335.30. Capping gains in gold, bond yields have been rising this week on expectations that strong economic data globally will encourage the US Federal Reserve to press ahead with monetary tightening. Expectations of rising interest rates tend to lift bond yields, reducing the appeal of holding non-yielding bullion while, at the same time, boos...
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