Gold Inches Higher As Dollar Softens

Gold gained on Friday but headed for its biggest quarterly decline since March last year amid worries about aggressive monetary policy tightening by central banks worldwide.

Spot gold rose 0.6 percent to $1,669.97 per ounce, while U.S. gold futures were up 0.6 percent at $1,678.25.

Prices are set for a weekly gain of about 1.7 percent as the dollar index hit a one-week low, making bullion less expensive for buyers holding other currencies.

For the quarter, however, gold is down about 7.4 percent, marking its worst since the first quarter of 2021.

The dollar rally against major rivals stalled and U.S. Treasury yields declined despite hawkish Fed commentary.

I'm quite comfortable" with raising interest rates to 4-4.5 percent this year and 4.5-5 percent next year, San Francisco Fed President Mary Daly told reporters after a speech at Boise State University on Thursday, adding she expects that rates will need to stay at that level for all of 2023.

Cleveland Fed President Loretta Mester echoed the hawkish rhetoric, saying the U.S. central bank will need to go even further than it signaled last week.

St. Louis Federal Reserve Bank President James Bullard noted that the weekly Jobless Claims reported on Thursday was a "super low number," and it was important to avoid a 1970s inflation scenario.

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