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Gold futures edged up Friday morning and were set for a weekly gain as a weak U.S. dollar and subdued Treasury yields helped bullion claw back some of its over 5% decline from last week.
Trading in precious metals has been unsteady this week as investors rotated into into equities and away from assets perceived as havens.
August gold
GCQ21,
GC00,
was trading $13.70, or 0.8%, higher, at $1,790.30 an ounce, following a 0.4% decline on Thursday. For the week, bullion is looking at a 1.2% gain as a gauge of the U.S. dollar, the ICE U.S. Dollar Index
DXY,
was down 0.6% for the week.
The 10-year Treasury yield note
TMUBMUSD10Y,
meanwhile, has hung around 1.5%.
Commodity investors were weighing on a report on consumer spending, income and the Federal Reserve’s preferred measure of inflation, PCE.
The personal-consumption expenditures index, or PCE, increased 0.4% in May, while the core reading, excluding volatile food and energy prices, rose 0.5%. U.S. consumer spending was flat in May as consumer income declined 2% last month.
On an annual basis, the PCE deflator rose 3.9% for the year, the biggest increase since August 2008. Excluding food and energy prices, the core PCE rose 3.4% in the year to May, the fastest increase since 1992, the Commerce Department reported Friday.
