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Gold set for fourth weekly gain on softening dollar

Reuters  |  BENGALURU 

By Arijit Bose

BENGALURU (Reuters) - Gold rose on Friday as the dollar slipped on expectations that brakes could soon be applied to U.S. interest rates, putting the on track for a fourth straight weekly gain.

Spot gold rose 0.4 percent to $1,292.01 an ounce by 1320 GMT. U.S. gold futures were up 0.4 percent at $1,292.90.

The dollar slipped against other major currencies, impaired by Fed Jerome Powell's comment that the central could be patient on rate policy.

"Gold rose on a somewhat weaker dollar, but at the moment it seems to be trying to overcome the $1,300 hurdle," said

The was also supported by increasing market nervousness over U.S. Donald Trump's unbending demand for a wall to be built on the border with

Trump threatened on Thursday to use emergency powers to bypass to pay for the proposed wall.

"If more speculators jump on the bandwagon (because of the shutdown), gold will pass the $1,300 level," Briesemann said.

Gold, which is used as a safe-haven investment during times of economic, political and financial uncertainty, is up about 0.6 percent for the week.

"Volatile equity markets and a stalemate over the shutdown should keep (gold) prices well supported. In fact, investors continue to pour money into the gold ETF market," analysts said in a note.

Holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, are near their highest since late July.

"The $1,300 resistance level for gold is looking very vulnerable. Risk aversion has been supportive, but as we're seeing now, its primary is the dollar," said

"And the dollar softening as trade relations between the U.S. and improve should continue to lift gold."

U.S. officials expect China's top to visit this month after this week's talks with mid-level officials in

Among other precious metals, palladium firmed by 0.1 percent to $1,323.49 an ounce and was up about 1.8 percent for the week. Silver, meanwhile, was up 0.6 percent at $15.66 and platinum rose 0.2 percent to $821.30.

(Reporting by Arijit in Bengaluru; Editing by David Goodman)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, January 11 2019. 19:39 IST