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PRECIOUS-Gold set for biggest weekly gain in over 2 months on dovish Fed

Credit: REUTERS/MICHAEL DALDER

Gold prices held near a two-week high on Friday, and were set for their biggest weekly gain in more than two months, on renewed signs that the U.S. Federal Reserve may not taper economic support and hike interest rates in the near term.

July 30 (Reuters) - Gold prices held near a two-week high on Friday, and were set for their biggest weekly gain in more than two months, on renewed signs that the U.S. Federal Reserve may not taper economic support and hike interest rates in the near term.

FUNDAMENTALS

* Spot gold XAU= was steady at $1,827.70 per ounce, as of 0053 GMT, after having hit its highest since July 15 at $1832.40 on Thursday. Bullion was on track for its biggest weekly gain since May 21, having risen 1.5% so far.

* U.S. gold futures GCv1 eased 0.2% to $1,827.70 per ounce.

* The dollar index .DXY was steady at a one-month low hit in the previous session, after the U.S. central bank said the job market still had "some ground to cover" before it would pull back on monetary stimulus. USD/

* A weaker dollar makes gold cheaper for holders of other currencies.

* Data on Thursday showed the U.S. economy grew solidly in the second quarter, but fell short of analysts expectations.

* Holdings in the SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, rose 0.6% to 1,031.46 tonnes on Thursday, marking the first inflow in about a month. GOL/ETF

* Gold prices will average a little above their current level of $1,830 an ounce for the remainder of 2021 before edging lower next year as the global economy recovers and central banks begin to tighten monetary policy, a Reuters poll showed on Thursday.

* Another poll showed that analysts revised up their forecasts for palladium, with a chronic shortage of the metal used to reduce harmful engine emissions expected to keep prices close to record levels.

* Silver XAG= dipped 0.3% to $25.46 per ounce, palladium XPD= rose 0.4% to $2,655.21, while platinum XPT= fell 0.7% to $1,053.47.

DATA/EVENTS (GMT)

0900 EU HICP Flash YY July

0900 EU HICP-X F&E Flash YY July

0900 EU GDP Flash Prelim QQ, YY Q2

0900 EU Unemployment Rate June

1230 US Consumption, Adjusted MM June

1400 US U Mich Sentiment Final July

(Reporting by Eileen Soreng in Bengaluru, Editing by Sherry Jacob-Phillips)

((eileen.soreng@thomsonreuters.com; Within U.S. +1 646 223 8780, Outside U.S. +91 80 6749 6131; Reuters Messaging: eileen.soreng.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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