Gold edges higher; eyes best week in seven as yields, dollar dip

Gold prices inched up on Friday and were on course to mark their best week in seven, as easing U.S. Treasury yields and dollar lifted the metal's appeal.

FUNDAMENTALS
Spot gold rose 0.2% to $1,724.80 per ounce by 0101 GMT. Prices were up 1.4% for the week so far, their biggest jump since the week ended Jan. 22.


U.S. gold futures was steady at $1,723.10.

Benchmark U.S. Treasury yields pulled further down from a more than one-year peak hit last week, reducing the opportunity cost of holding non-interest paying gold.

The dollar hovered near a one-week low against rivals.

The European Central Bank said on Thursday it would accelerate money-printing to keep a lid on euro zone borrowing costs, signalling to sceptical markets that it is determined to lay the foundation for a solid economic recovery.

The number of Americans filing new claims for jobless benefits dropped to a four-month low last week.

President Joe Biden prepared to tell Americans in a televised address that he is taking aggressive action to speed COVID-19 vaccinations and move the country closer to normality by July 4, hours after signing his $1.9 trillion stimulus bill into law on Thursday.

Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust , fell 0.5% to 1,055.27 tonnes on Thursday.

Silver climbed 0.1% to $26.11 an ounce, and was on track for its best week since late January with a 3.7% rise. Palladium gained 0.2% to $2,349.52.

Platinum rose 1.2% to $1,209.10 and was set to post its best week in four with a 7% gain.

DATA/EVENTS (GMT)
0700 Germany HICP Final YY Feb
0700 UK GDP Est 3M/3M Jan
0700 UK GDP Estimate MM, YY Jan
0700 UK Manufacturing Output MM Jan
1500 US U Mich Sentiment Prelim March