Gold futures edged up Friday morning and were set for a weekly gain as a weak U.S. dollar and subdued Treasury yields helped bullion claw back some of its over 5% decline from last week.
Trading in precious metals has been unsteady this week as investors rotated into into equities and away from assets perceived as havens.
August gold
GCQ21,
+0.45%
GC00,
+0.45%
was trading $13.70, or 0.8%, higher, at $1,790.30 an ounce, following a 0.4% decline on Thursday. For the week, bullion is looking at a 1.2% gain as a gauge of the U.S. dollar, the ICE U.S. Dollar Index
DXY,
-0.14%,
was down 0.6% for the week.
The 10-year Treasury yield note
TMUBMUSD10Y,
1.492%,
meanwhile, has hung around 1.5%.
Commodity investors were weighing on a report on consumer spending, income and the Federal Reserve’s preferred measure of inflation, PCE.
The personal-consumption expenditures index, or PCE, increased 0.4% in May, while the core reading, excluding volatile food and energy prices, rose 0.5%. U.S. consumer spending was flat in May as consumer income declined 2% last month.
On an annual basis, the PCE deflator rose 3.9% for the year, the biggest increase since August 2008. Excluding food and energy prices, the core PCE rose 3.4% in the year to May, the fastest increase since 1992, the Commerce Department reported Friday.
