Soft US inflation pushes gold prices higher for the first time in four weeks
London — Gold was set for its first weekly gain in four weeks on Friday after soft US inflation data suggested that the US Federal Reserve could show caution on the pace of interest rate rises. The weaker-than-expected April consumer price data on Thursday helped knock the dollar from 2018 highs and push down US bond yields. Both fell further on Friday. That benefits gold because a weaker dollar makes bullion cheaper for users of other currencies, while lower bond yields make non-yielding gold more attractive to investors. "[Gold’s rise] was mostly a response to the consumer price data out of the US yesterday," said Capital Economics analyst Simona Gambarini. Spot gold was up 0.3% at $1,324.69 an ounce by 10.28am GMT, having touched a two-week high of $1,325.06. It was up 0.7% for the week. US gold futures for June delivery gained 0.2% to $1,324.70. Gold has traded in a range of about $1,310 to $1,355 since hitting a one-and-a-half-year high in January. Prices appeared to be buildin...
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