Gold Edges Up As Dollar Extends Slide

Gold prices inched higher on Friday as the dollar extended a slide and Treasury yields held steady amid easing worries about Fed policy moves.

Spot gold rose half a percent to $1,860.26 per ounce, while U.S. gold futures were up 0.6 percent at $1,857.88.

The dollar was set for its biggest weekly drop in nearly four months amid expectations that the Federal Reserve may become less aggressive in tightening rates later in the year.

Cautious comments by some Fed policymakers including Atlanta Fed President Raphael Bostic this week and the latest FOMC meeting minutes suggesting a flexible approach on rates prompted traders to lower rate hike expectations.

The yield on benchmark 10-year Treasury notes dipped to 2.7468 percent as the focus shifted to the U.S. April core PCE price index due later in the day that could provide clues as to how the inflation outlook is shaping up.

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