Struggling Dollar Sparks Rise in Gold

Gold prices were holding near a more than one-week high as morning grew closer to afternoon on Friday, supported by a retreating U.S. dollar and lower Treasury yields as markets awaited economic data to gauge the pace of upcoming U.S. rate increases.

Spot gold was steady at $1,821.60 U.S. per ounce , after earlier reaching a week’s high of $1,828.92. U.S. gold futures were up 0.1% to $1,822.80.

Bullion has risen by about 1.4% so far this week, the steepest climb since Nov. 12.

Non-yielding bullion is considered an inflationary hedge. It also benefits from dollar weakness that makes it cheaper for holders of other currencies.

Federal Reserve policymakers this week signaled they will start raising U.S. interest rates in March to fight inflation.

Spot silver fell 0.1% to $23.05 U.S. an ounce and was en route to its best week in two months.

Platinum rose 0.9% to $978.01 U.S. and was set to gain this week, while palladium rose 0.2% to $1,891.68 U.S., yet was poised for a weekly drop.