London — Gold rose to a three-week high on Friday as the dollar index slid to a three-year low and stronger-than-expected inflation data this week boosted interest in the metal as a hedge against price pressures. Gold is holding on track for its biggest weekly gain in nearly two years, snapping two straight weeks of losses that pulled it back from last month’s one-and-a-half year peak. Spot gold was up 0.4% at $1,358.83 an ounce at 10.30am GMT, while US gold futures for April delivery were up $6.40 an ounce at $1,361.70. "We’re looking for the dollar to keep weakening. For me that’s the key thing to watch for gold," Oxford Economics’ director of commodity services Daniel Smith said. "Gold tends to do particularly well in that kind of environment." Signs of rising inflation were also helping drive the metal higher, he said. "If inflation expectations rise faster than nominal rate expectations, then this should add fuel to the fire, particularly in an environment of US dollar weakness...
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