<p>Gold prices rose on Friday, as the US dollar and bond yields extended their retreat in the wake of US economic data, and put bullion on track for its best week in nearly five months.</p>.<p>Spot gold was up 0.6 per cent at $1,766.08 per ounce, as of 0616 GMT. Bullion gained about 2.3 per cent so far this week, its best since early March. US gold futures rose 0.7 per cent to $1,780.70.</p>.<p>Gold remains inversely correlated to the dollar and yields, rather than being a gold story in itself, OANDA senior analyst Jeffrey Halley said, adding that their recent dips provided some support to bullion this week.</p>.<p>Despite an upbeat week for gold, it was still poised for a fourth consecutive monthly drop, its worst run of monthly losses since November 2020.</p>.<p>The dollar has spent most of July hovering around 20-year highs, hammering demand for greenback-priced gold among other currency holders.</p>.<p>Also weighing on bullion prices were top central banks adopting an aggressive approach to interest rate hikes and monetary policy tightening in their attempt to combat inflation, along with a strong showing from US treasury yields earlier in July.</p>.<p>Higher rates and bond yields increase the opportunity cost of holding non-yielding gold. Benchmark US 10-year Treasury yields slipped on Friday.</p>.<p>"Although bullion saw a sell-off below $1,700 (earlier this month) it is significant that long-term support at $1,675/80 was tested and held. Gold has been trying to form a bottom since," helped by recent signs of a US recession, Halley said.</p>.<p>The US economy unexpectedly contracted in the second quarter, raising risks of an economic slowdown, which contributed to an over one per cent jump in prices of safe-haven gold on Thursday.</p>.<p>Spot silver firmed one per cent to $20.18 per ounce, while platinum rose 1.5 per cent to $901.08. Palladium fell 1.5 per cent to $2,046.16 but has gained about 5.8 per cent this month, its best since February.</p>
<p>Gold prices rose on Friday, as the US dollar and bond yields extended their retreat in the wake of US economic data, and put bullion on track for its best week in nearly five months.</p>.<p>Spot gold was up 0.6 per cent at $1,766.08 per ounce, as of 0616 GMT. Bullion gained about 2.3 per cent so far this week, its best since early March. US gold futures rose 0.7 per cent to $1,780.70.</p>.<p>Gold remains inversely correlated to the dollar and yields, rather than being a gold story in itself, OANDA senior analyst Jeffrey Halley said, adding that their recent dips provided some support to bullion this week.</p>.<p>Despite an upbeat week for gold, it was still poised for a fourth consecutive monthly drop, its worst run of monthly losses since November 2020.</p>.<p>The dollar has spent most of July hovering around 20-year highs, hammering demand for greenback-priced gold among other currency holders.</p>.<p>Also weighing on bullion prices were top central banks adopting an aggressive approach to interest rate hikes and monetary policy tightening in their attempt to combat inflation, along with a strong showing from US treasury yields earlier in July.</p>.<p>Higher rates and bond yields increase the opportunity cost of holding non-yielding gold. Benchmark US 10-year Treasury yields slipped on Friday.</p>.<p>"Although bullion saw a sell-off below $1,700 (earlier this month) it is significant that long-term support at $1,675/80 was tested and held. Gold has been trying to form a bottom since," helped by recent signs of a US recession, Halley said.</p>.<p>The US economy unexpectedly contracted in the second quarter, raising risks of an economic slowdown, which contributed to an over one per cent jump in prices of safe-haven gold on Thursday.</p>.<p>Spot silver firmed one per cent to $20.18 per ounce, while platinum rose 1.5 per cent to $901.08. Palladium fell 1.5 per cent to $2,046.16 but has gained about 5.8 per cent this month, its best since February.</p>