Gold inched higher on Friday but was set for a weekly loss after last week’s U.S. jobs report boosted expectations the Federal Reserve could begin tapering its economic support sooner than previously anticipated.
Spot gold rose 0.3 percent to $1,758.28 per ounce, but was down 0.3 percent for the week. U.S. gold futures were up half a percent at $1,759.75.
The dollar held firm near its highest level in four months against a basket of currencies as investors fretted about the potential for new regulatory crackdowns in China and the fallout from the surging Delta variant of the new coronavirus in the United States and elsewhere.
Fed’s monetary tightening debate continues despite U.S. consumer inflation moderating for the first time in several months.
Bond yields hold steady following a busy week for new auctions, as well as a mixed bag of inflation data.
U.S. wholesale prices jumped 1 percent last month, a government report showed Thursday while economists had forecast a 0.6 percent rise.
Gold is seen as a hedge against inflation, but a Fed rate hike will increase the opportunity cost of holding non-yielding bullion.