Gold prices rose for a sixth straight session on Friday, to notch up the largest weekly gain in two months as the U.S. dollar slid to its lowest level in more than a year, underpinning demand for the precious metal.
Gold for August delivery closed up 0.72% at $1,254.48 on the Comex division of the New York Mercantile Exchange. For the week, the precious metal was up 1.97%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, ended down 0.32% at 93.78, the lowest close since June 22, 2016.
The index ended the week down 1.32%, marking its second straight weekly decline.
A weaker dollar tends to boost prices for gold, which is denominated in the U.S. currency.
The greenback was pressured lower by the stronger euro, which was boosted by expectations that the European Central Bank is moving closer to tapering its bond-buying program and fresh political turmoil in Washington.
Doubts over the Federal Reserve’s plans for a third rate hike this year have also fed into dollar weakness. The Fed is to hold its next meeting on Wednesday and is widely expected to hold policy steady.
Elsewhere in precious metals trading, silver rose 0.92% to $16.49 a troy ounce late Friday, while copper was up 0.33% to $2.725 a pound
Platinum rose 0.49% to $937.8 a troy ounce, while palladium was down 0.42% to $844.03 a troy ounce.
In the week ahead, investors will be awaiting the outcome of Wednesday’s Fed meeting, ahead of data on Friday which will give the first look at U.S. second quarter growth.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, July 24
The euro zone is to publish survey data on private sector business activity.
Canada is to report on wholesale sales.
The U.S. is to release figures on existing home sales.
Tuesday, July 25
The Ifo Institute is to report on German business climate.
The U.S. is to release data on consumer confidence.
Wednesday, July 26
Australia is to release data on consumer price inflation.
The UK is to release preliminary data on second quarter economic growth.
The U.S. is to report on new home sales.
The Fed is to announce its benchmark interest rate and publish a rate statement which outlines economic conditions and the factors affecting the monetary policy decision.
Thursday, July 27
The U.S. is to release data on jobless claims and durable goods orders.
Friday, July 28
In the euro zone, Germany is to release preliminary inflation data.
Canada is to release monthly data on economic growth.
The U.S. is to round up the week with advance data on second quarter growth.