Gold rises on softer dollar, easing yields; Fed outlook in focus

Business Recorder reported that bullion prices edged up on Friday, reaching $4,169.32 an ounce at 0137 GMT, a gain of 0.9%. The metal became cheaper for buyers using other currencies after a weaker greenback and lower Treasury yields. Earlier in the week, the metal had slumped to its lowest level in two months.

US gold futures advanced 0.9% to $4,194.40. Silver, platinum and palladium also climbed on the day, although all three were heading for weekly declines. Based on CME's FedWatch tool, the odds of a rate hike are 18% in October and 82% in December. St. Louis Fed President Alberto Musalem said another increase will be required to bring inflation back to the 2% target, though he gave no indication of how officials would vote at the October meeting.

Last month the US central bank raised its policy rate by a quarter point in a unanimous vote. Crude has climbed as Middle East supply disruption risks rise, adding to inflation worries. Bullion is usually viewed as protection against rising prices, yet higher rates make the non-yielding metal less attractive. Separately, Donald Trump has stated that Washington will refrain from attacking Iran ahead of the midterm polls in November, saying talks are productive.