Gold rises on weaker dollar, heads for 1st weekly gain in four

Friday,   21-Sep-2018   09:03 AM (IST)

Gold prices edged higher on Friday to a one-week high as the dollar weakened on receding fears of a full-blown Sino-U.S. trade war, with the yellow metal heading for its first weekly gain in four. Spot gold inched up 0.2 percent to $1,209.38 by 0036 GMT, after touching its highest since Sept. 13 at $1,210.01. It has risen 1.3 percent so far this week. U.S. gold futures were up 0.3 percent at $1,214.30 an ounce. Investors are awaiting next week’s Federal Reserve meeting. The U.S. central bank is widely expected to raise benchmark interest rates and shed light on the path for future rate hikes. All 113 economists in the Reuters poll forecast the Fed would raise rates when it meets Sept. 25-26. It is expected to follow that up with one more before the end of this year, taking the fed funds rate to 2.25-2.50 percent. Higher rates dent demand for non-interest yielding gold and in turn boost the dollar in which it is priced.