Khaberni - Gold prices rose on Friday, supported by the dollar's decline and lower U.S. Treasury yields, while investors assess the economic impacts of escalating war in the Middle East.
The spot gold price rose 0.7% to $5112.34 per ounce. However, U.S. gold futures for April delivery fell 0.2% to $5115.80.
The precious metal has lost 1% so far this week, affected by diminishing hopes for a near-term U.S. interest rate cut as rising energy prices fuel inflation fears.
The dollar decreased slightly, making commodities priced in it, like gold, cheaper for holders of other currencies.
Yields on 10-year U.S. Treasury bonds have declined, which enhances the attractiveness of gold that does not yield a return.
Investors are now awaiting the release of the Personal Consumption Expenditures index for January later today.
For other precious metals, the spot silver price increased 1.5% to $85.03 per ounce. The spot platinum price rose 1.3% to $2159.01, and the palladium price increased 0.8% to $1630.71.
