Gold eased on Friday but remained on track for a fourth straight week of gains, spurred by U.S. Federal Reserve Chair Jerome Powell’s dovish comments and concerns over a stalling global economic recovery.
Spot gold dropped 0.4 percent to $1,822.51 per ounce, after having hit $1,833.65 on Thursday, its highest since June 16. U.S. gold futures were down 0.6 percent at $1,817.95.
The dollar is eyeing a strong close to the week amid lingering worries that the economic recovery will be stymied by the Delta wave sweeping the world.
As new variants become more pervasive, the COVID-19 curve in the U.S. is rising again after months of decline.
Some countries are beginning to tighten restriction restrictions as the fast-spreading delta variant sweeps across the globe.
U.S. Treasury yields hovered near multi-month lows after U.S. Treasury Secretary Janet Yellen said that expectations for price gains still look well contained.
Fed Chair Jerome Powell also reiterated expectations for inflation pressures to fade in a hearing before the Senate Banking Committee on Thursday.
German and Italian government bond yields were set to end the week lower for the third week in a row.