Gold soared to a three-week high on Friday, February 16, as the dollar index slid to a three-year low and
stronger-than-expected inflation data this week boosted interest in the metal as a hedge against price pressures.
Gold is holding on track for its biggest weekly gain in nearly two years, snapping two straight weeks of losses that pulled it back from last month’s 1-1/2 year peak.
Spot gold was up 0.4 percent at $1,358.83 an ounce at 1030 GMT, while U.S. gold futures for April delivery were up $6.40 an ounce at $1,361.70.
Spot gold has risen 3.2 percent so far this week, putting it on track for its biggest weekly rise since April 2016. Gold has fared less well in other currencies, rising 1 percent in euro terms and 1.5 percent in sterling.
The dollar hit a three-year low versus a currency basket on Friday, hurt by concerns that Washington might pursue a weak dollar strategy and the perceived erosion of its yield advantage as other countries consider tighter monetary policy.
Data this week showed U.S. producer prices accelerated in January, while initial claims for state unemployment benefits increased in the week ended Feb. 10.
China, as well as in South Korea, Malaysia and Vietnam. In India, physical gold was sold at a discount for the first time in three weeks as demand slumped due to a jump in local rates. Gold in rupee terms hit a 15-month high of 30,836 rupees on Friday.
Among other precious metals, silver was up 0.1 percent at $16.89. Platinum was 0.8 percent higher at
$1,009, after hitting its highest since Jan. 29 at $1,012.70.
Palladium was up 0.8 percent at $1,025.55. The metal has risen 5.3 percent so far this week, its best since October.
