Gold Prices Rise But Remain on Track for Second Straight Weekly Loss

Investing.com – Gold prices rose on Friday but remained on track for a weekly loss as easing geopolitical tensions kept a lid on safe-haven demand.

for June delivery on the Comex division of the New York Mercantile Exchange rose by $5.40 or 0.41%, to $1,323.20 a troy ounce.

The precious metal remained close to its intraday high of 1,324.80, which followed dollar weakness as traders digested a slowdown in first quarter growth.

The Commerce Department Friday released its preliminary reading of showing the U.S. economy expanded at a 2.3% annual rate as consumer spending slumped.

Yet, a separate report confirmed the – which shows the cost of employing the average American worker – rose at a 0.8% pace, beating economists’ expectations, pointing to a faster wage growth.

That confirmed ongoing tightness in the labor market was pushing wage growth higher, strengthen the Federal Reserve’s case to continue with gradual hike rates.

In a rising interest rate environment, investor appetite for gold weakens as the opportunity cost of holding the precious metal increases relative to other interest-bearing assets such as bonds.

Gold prices remained on track to post a second-straight weekly loss as geopolitical uncertainty – that had been supporting the precious metal – has largely abated following signs of progress toward peace talks on the Korean peninsula and improving U.S.-China relations.

The leaders of North and South Korea on Friday pledged to complete denuclearisation of the Korean Peninsula as they aim to bring a formal end to the Korean War.

In other precious metal trade, fell 0.43% to $16.42 a troy ounce, while rose 0.67% to $916.20 an ounce.

fell 2.18% to $3.05.

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