Gold Heads for First Weekly Increase in 5 Weeks

SadaNews Economy - Gold rose by more than one percent on Friday and is heading to record its first weekly gains in five weeks amid a decline in investors' expectations for the Federal Reserve (the U.S. central bank) to raise interest rates following the release of U.S. employment data that came in weaker than expected.

Gold climbed in spot trading by 1.4 percent to $4180.94 per ounce by 02:35 GMT, marking its highest level since June 23.

U.S. gold futures for August delivery rose 1.6 percent to $4193.20.

The precious metal is set to achieve weekly gains of 2.3 percent, marking its first increase since the week that began on May 25, as the weaker-than-expected non-farm payrolls and private sector jobs data eased inflation-related concerns.

The dollar is on track to record a weekly decline, making gold, priced in dollars, cheaper for holders of other currencies.

According to the CME FedWatch Tool, traders now expect a nearly 54 percent chance of an interest rate hike in September, down from about 66 percent before the data was released.