Gold firms on weaker dollar as inflation data cements rate hold bets
GLD•Oil, Strait of Hormuz tensions, and other metals
Meanwhile, transit through the Strait of Hormuz appeared to grind to a near-standstill after two more ships were attacked and the United States said it could maintain a naval blockade of Iran indefinitely.
Oil prices were on track for weekly gains on the news.
"If crude oil prices continue to rise, that's going to be a bearish element for the metals market because it would aid inflation and prompt central banks to raise interest rates," Wyckoff said.
Elsewhere, gold discounts in India widened to more than two-month highs.
Spot silver (XAG=) climbed 1% to $65.08 per ounce, platinum (XPT=) gained 0.9% to $1,733.34, and palladium (XPD=) rose 0.9% to $1,318.50.
Gold rises as dollar weakens and rate-hold bets grow
Gold advanced on Friday, buoyed by a weaker dollar after in-line U.S. inflation readings this week tipped the scales in favor of an interest rate hold by the Federal Reserve next month.
Spot gold (XAU=) gained 0.6% to $4,376.02 per ounce by 9:09 a.m. EDT (1309 GMT). Prices declined 1.3% in the previous session on profit-taking after touching their highest level since June 5. Bullion is up around 0.7% for the week so far.
U.S. gold futures (GCcv1) rose 0.3% to $4,433.90.
"The lower U.S. dollar index is a friendly outside market that's supporting gold today," said Jim Wyckoff, a market analyst at American Gold Exchange.
