Gold prices rose on Friday and the dollar dipped as U.S. senators reached an agreement on the infrastructure spending bill worth $579 billion, helping underpin appetite for riskier currencies.

The upside, however, was capped amid caution ahead of key U.S. inflation due out later in the day.

Spot gold rose half a percent to $1,783.58 and was poised for a weekly gain. U.S. gold futures were up 0.4 percent at $1,783.55 per ounce.

Biden’s infrastructure agreement proposes spending to rebuild roads, bridges and other traditional infrastructure over the next five years.

The bipartisan deal is expected to move through Congress, along with a separate bill on infrastructure plan backed by Democrats.

Overnight data showed a fall in U.S. jobless claims and a surge in durable goods orders, reflecting the continued economic recovery.

After mixed signals from Federal Reserve officials this week on interest rate hikes, investors now await report on personal income and spending, which includes personal consumption expenditure price index, the Fed’s preferred gauge of inflation for new clues on rate hike timing.

The material has been provided by InstaForex Company – www.instaforex.com

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