Gold Anticipates Biggest Weekly Jump in Nearly 2 Years

Gold prices eased from three-week highs on Friday as the American dollar index rebounded from an earlier three-year low, but was still on track for its biggest weekly gain in nearly two years on the back of weakness in the U.S. currency and inflation concerns.

The greenback hit its lowest since 2014 in overnight trade and is heading for its biggest weekly loss in two years as negative sentiment offset any support the greenback could take from rising Treasury yields.

Spot gold was up 0.2% at $1,355.76 U.S. an ounce early Friday off an earlier three-week peak of $1,361.76. U.S. April gold futures were up 0.3% an ounce at $1,358.80 U.S.

Spot gold has risen 3.2% 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 but 1% in euro terms and 1.5% 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.

Among other precious metals, silver was down 0.5% at $16.79, while platinum was up 0.6% at $1,002 U.S. after hitting its highest since Jan. 29 at $1,012.70 U.S.

Palladium advanced 1.5% at $1,033. The metal has risen 5.9% so far this week, its best since October.