Gold prices rose on Friday as the dollar weakened, though investor worries that recent economic data could lead the U.S. Federal Reserve to keep raising interest rates capped gains.
Spot gold was up 0.2% at $1,826.45 per ounce Friday. U.S. gold futures gained 0.4% to $1,834.80.
Bullion is likely to decline for a fourth straight week and is down about 0.8% for the period.
Bullion is seen as a hedge against inflation, but rising interest rates dull its appeal as they increase the opportunity cost of holding the non-yielding asset vis-a-vis bonds.
Data on Thursday showed U.S. GDP increased at a revised 2.7% annualized rate last quarter, while new claims for unemployment benefits unexpectedly fell last week.
Separately, data showed fourth-quarter personal consumption expenditures (PCE) price index rose 3.7%, revised up from a previous estimate of 3.2%.
Thursday’s reports are the latest in a flurry of data that has fueled concerns that interest rates would stay higher for longer.
Traders of Fed funds futures expect benchmark rates to peak at 5.347% in July and remain above 5% through the year.
The Fed’s preferred inflation measure, the PCE data for January, is due around 9:30 a.m. EST and will be closely watched.
Spot silver rose 0.2% to $21.33 per ounce, platinum was little changed at $947.30 and palladium fell 0.3% to $1,444.99.
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