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Gold On Track For Weekly Gain

Gold futures inched higher Friday, on track for modest weekly gains amid renewed expectations the Federal Reserve will be very cautious on raising interest rates.

This week's testimony from Fed Chair Janet Yellen suggested the Fed is somewhat concerned about low inflation and economic headwinds abroad.

While it is possible the Fed may raise rates again this year, it its unlikely borrowing costs will return to historic norms.

The Fed would like to see some greater evidence of progress toward meeting our 2% inflation objective in the medium term.

Gold was up $4 at $1221 an ounce, moving further from recent 4-month lows.

Markets are bracing for a slew of economic data.

Retail Sales for June will be issued at 8.30 am ET. The consensus is for growth of 0.1 percent, while it declined 0.3 percent in May.

The Consumer Price Index for June will be published at 8.30 am ET. Economists are looking for monthly growth of 0.1 percent, compared to a decline to 0.1 percent in the previous period.

The Institute for Social Research of the University of Michigan's Consumer Sentiment Index for July is expected at 10.00 ET. The consensus is for 95.1 unchanged from last month.

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