Gold inches towards $4,180 on softer dollar

Gold prices edged higher on Friday, helped by a weaker US dollar and lower Treasury yields that made the metal look more appealing to buyers. According to Mettis Global, spot gold climbed 1.84% to $4,179.79 an ounce. The gain came even as investors weighed persistent inflation concerns and the path of Federal Reserve interest rates.

St Louis Fed President Alberto Musalem said rates would need to rise again for inflation to return to its 2% target, but gave no signal on the decision policymakers will take at the meeting due later this month, according to CNBC. The Fed unanimously backed a quarter-point increase in its policy rate last month. Separately, US President Donald Trump said he would not order an attack on Iran before the November midterms, describing talks between the two countries as productive in efforts to end the six-month-old war.

The dollar's rally stalled, leaving bullion priced in greenbacks less expensive for buyers holding other currencies, while the 10-year Treasury yield dropped for a second straight session. Traders, according to CME's FedWatch tool, assign an 18pc chance to a rate hike in October and 82% to a December increase. Other precious metals also advanced, with silver up 1.1% at $60.00, platinum 2.2% higher at $1,670.15 and palladium 2.1% stronger at $1,146.98.