Gold heads for best week since April on Fed pause bets

Gold prices were on track on Friday for their biggest weekly rise since early April, buoyed by hopes the U.S. Federal Reserve will not raise interest rates at its policy meeting this month, which also weighed on the dollar and bond yields.

Spot gold was up 0.1% at $1,978.77 per ounce by 12:06 GMT. U.S. gold futures were mostly flat at $1,996.00.

Bullion has gained 1.7% so far this week, heading for its best week since the one ended April 7.

With the resolution of uncertainty around the U.S. debt ceiling, “investors are now taking a pause to see what’s going to happen with the non-farm payrolls” which are due at 1230 GMT, said ActivTrades senior analyst Ricardo Evangelista.

The U.S. dollar index and 10-year Treasury yields were both headed for their worst weeks since mid-March, making dollar-priced, zero interest-bearing bullion more attractive.

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