Gold Edges Higher on U.S. Stimulus Hopes

Gold inched higher on Friday on renewed hopes of more U.S. stimulus measures, though the bullion was on track for its biggest weekly decline in more than a month pressured by a stronger dollar.

Spot gold rose 0.1% to $1,869.47 U.S. per ounce. But on a weekly basis, prices are down 4.1% so far.

U.S. gold futures were down 0.4% to $1,870.30.

Democrats in the U.S. House of Representatives are working on a $2.2-trillion coronavirus stimulus package that could be voted on as soon as next week.

U.S. Federal Reserve policymakers, including Chairman Jerome Powell, made a number of public appearances this week calling on the U.S. government to provide more fiscal support.

Central banks worldwide have rolled out massive stimulus and slashed interest rates to near zero to counter the economic damage from the COVID-19 pandemic, helping gold, considered a hedge against political and economic uncertainties, climb over 20% this year.

Silver fell 0.6% to $23.07 U.S. per ounce and platinum rose 0.6% to $854.13 U.S. Both metals are on track for their worst week since mid-March.

Palladium edged 0.2% higher to $2,229.92 U.S. per ounce.