Gold heads for small weekly rise on muted dollar

Gold prices were little changed on Friday, but were headed for a small weekly gain due to a weaker dollar and lingering economic concerns, while investors looked ahead to the Federal Reserve’s policy move next week.

FUNDAMENTALS

Spot gold was little changed at $1,986.71 per ounce by 0042 GMT, but was headed for a 0.2% weekly gain.

U.S. gold futures eased 0.1% to $1,996.20.

The dollar index was largely unchanged on the day, but was set for a weekly fall, making gold less expensive for other currencies holders.

U.S. economic growth slowed more than expected in the first quarter as an acceleration in consumer spending was offset by businesses liquidating inventories in anticipation of weaker demand later this year amid higher borrowing costs, data showed.

The FOMC (Federal Open market Committee) gathers on May 2-3, and markets are pricing in a 85.4% chance of a 25 basis points rate hike.

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