Gold price inches higher

NEW DELHI, July 29 (Reuters): Gold prices inched up on Friday but were set for a fourth consecutive monthly drop, pressured by the strong performance of the greenback and rising US bond yields. However, the metal is set for its best week since mid-May.
The US economy unexpectedly contracted in the second quarter, raising risks of an economic slowdown, which lifted gold's safe-haven allure.
NSE 0.63 per cent were trading higher by 0.12 per cent or Rs 62 at Rs 51,505 per 10 grams. However, silver futures jumped more than 0.59 per cent or Rs 341 to Rs 57,960 per kg.
Bullion is unlikely to stave off its worst run of monthly losses since November 2020. The dollar has spent most of July hovering around 20-year highs, hammering demand for greenback-priced gold among other currency holders.
Gold prices gained after US Federal Reserve chair Jerome Powell signalled the central bank could slow the pace of rate hikes in coming months, said ICICIDirect in its morning report.
"Disappointing macroeconomic data from the US lifted demand for precious metals," it added. "The US economy unexpectedly contracted in the second quarter, with consumer spending growing at its slowest pace in two years."