Gold heads for best week since April

Gold prices were on track on Friday for their biggest weekly rise since early April, buoyed by hopes the US Federal Reserve will not raise interest rates at its policy meeting this month, which also weighed on the dollar and bond yields, reports Reuters.

Spot gold was up 0.1 per cent at $1,978.77 per ounce by 12:06 GMT. US gold futures were mostly flat at $1,996.00.

Bullion has gained 1.7 per cent so far this week, heading for its best week since the one ended April 7.

The US dollar index and 10-year Treasury yields were both headed for their worst weeks since mid-March, making dollar-priced, zero interest-bearing bullion more attractive.

Gold prices could move a little higher from here as the Fed is expected to keep policy on hold in June, said Edward Meir, a metals analyst at Marex.

Philadelphia Fed chief Patrick Harker said on Thursday that US central bankers should not raise interest rates at their next meeting.

Gold, which suffers when rates are higher, found support as markets scaled back expectations to a 24 per cent chance of the Fed hiking rates in June, compared to a 64 per cent chance seen one week ago.