Gold prices remained close to the key $ 1,900 an ounce on Friday, boosted by declining dollar and US bond yields as investors ignored data suggesting rising US inflation and hoped the Federal Reserve would not change its “Pigeon” position.
Spot gold was up 0.1% to $ 1,899.28 an ounce overnight on Friday, up 0.5% this week.
US gold futures rose 0.3% to $ 1,901.20 an ounce.
Data showed that US consumer prices rose steadily in May, resulting in the largest annual growth in nearly 13 years, while the number of weekly jobless claims fell to their lowest level in nearly 15 months last week.
The European Central Bank raised its growth and inflation forecasts on Thursday but pledged to provide a steady stream of stimulus over the summer, fearing that a retreat now will accelerate borrowing costs and halt the recovery.
Investors are not worried about the surge in inflation in the US over the past two months, demonstrating confidence that the Fed is cleverly handling the recovery in economic growth.
The US central bank is likely to announce a strategy to cut its massive bond buying program in August or September, but will not start cutting monthly purchases until early next year.
Silver remained steady at $ 27.96 an ounce, palladium fell 0.5% to $ 2,763.87 and platinum fell 0.1% to $ 1,150.31.