Gold prices held near six-week highs on Friday, though its recent rally appeared to falter as investors awaited U.S. gross domestic product (GDP) data for more clues about the pace of U.S. monetary policy tightening.
Stronger-than-expected growth would leave the U.S. Federal Reserve on track to raise rates, pushing up bond yields and making non-yielding gold less attractive. The data would also bolster the dollar, making bullion more expensive for holders of other currencies.
Early Friday morning, spot gold was flat at $1,259.51 U.S. an ounce after touching $1,264.99, the highest since June 15, on Thursday, and on track to rise for a third week in a row.
U.S. gold futures for August delivery were 0.1% lower at $1,259.50 U.S. an ounce.
Economists expected U.S. GDP to climb at a 2.6% annual rate in April-June, but positive economic data released on Thursday prompted some to raise their forecasts.
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