Gold was down on Friday morning in Asia as an improving economic outlook broadened investors’ risk appetite. However, a weaker dollar and growing inflationary pressure capped losses and set the yellow metal on track for a third consecutive weekly rise.
The dollar was pinned near milestone lows on Friday, and headed for a weekly loss, as traders’ initial concerns at taper talk in Federal Reserve minutes ebbed – with actual tapering seeming distant – while pandemic recovery boosted other currencies.
Oil prices edged up on Friday, taking a breather after three days of losses as investors braced for the return of Iranian crude supplies after officials said Iran and world powers made progress on talks to revive a 2015 nuclear deal.
The S&P 500 closed higher Thursday, snapping a three-day losing streak as a rally in chips and mega-cap tech triggered bullish bets on stocks.
Asia Pacific stocks were mostly down Friday morning even as the economic outlook improves and investor fears of a decrease in U.S. stimulus eased.
Gold steadied near the highest level in more than four months as investors assessed the minutes from the Federal Reserve’s meeting in April that flagged the possibility of a debate on scaling back asset purchases.