Gold set for weekly dip with resilient US economy in focus
Gold prices firmed on Friday but were set for a weekly decline as the dollar and Treasury yields held firm with strong U.S. economic data raising concerns of the Federal Reserve keeping interest rates higher for longer.
FUNDAMENTALS
* Spot gold was up 0.2% at $1,922.87 per ounce, as of 0116 GMT, but set for a 0.8% weekly fall.
U.S. gold futures rose 0.2% to $1,946.90.
* The dollar was headed for its longest weekly winning streak in nine years, bolstered by a resilient run of U.S.
economic data.
* New filings for state unemployment benefits fell unexpectedly last week to the lowest level since February, data showed on Thursday.
* U.S. Treasury yields declined on Thursday, as a move higher following the jobs data proved to be short-lived, with investors scanning comments from a host of Fed officials.
* New York Fed President John Williams kept his options open over future U.S.
interest rate policy, acknowledging falling inflation and a better balanced economy, which suggests there is no urgency for a rate rise later this month.
* Chicago Fed President Austan Goolsbee said getting the economy on the «golden path» — where inflation falls but recession is avoided — is possible, but not a guarantee.
* Dallas Fed President Lorie Logan said while it «could be appropriate» to skip an interest-rate increase in September, more policy tightening will likely be needed to get inflation down to 2% in a timely way.
* China held 69.62 million fine troy ounces of gold at the end of August, up from 68.69 million ounces at end-July, data showed.
* Elsewhere, spot silver rose 0.2% to $23.01 per ounce and platinum gained 0.3% to $906.14. However, both were set for their worst weeks since June 23.
* Palladium was up 0.2% at $1,214.83, but on
