Gold prices were up last Friday and the higher than expected euro zone inflation strengthened the European currency versus the dollar. Stock markets around the world pulled back from the record highs last Wednesday on global trade worries.
U.S. gold futures added $2.40 at $1,268.30 an ounce for its June delivery. Spot gold settled higher by 0.29 percent at $1,267.39 an ounce, it endured its biggest weekly lost since early March after falling by 1.4 percent from last Friday’s level.
ING analyst Hamza Khan suggested that $1,000 seemed to be more engaging for the bullion rather than $1,100. He added that more jitters surrounding North Korea along with a slight drop in the U.S. currency could be some of the circumstances that push gold prices higher. The risk of an anti-European Union candidate in the French presidential election showing strength also bothers the metal.
The euro notched its 5 month high as figures were perceived as pressuring the European Central Bank to begin dialling back stimulus measures by the month of June. This made the bullion rise, which is expensive in the dollar.
Meanwhile the bank is keeping an eye on the future price of gold this 2017 regardless of its strong performance in the first quarter, as expectations of an interest rate hike could possibly hurt the bullions reputation.
Palladium was the only weekly gainer among sliver, platinum and gold as it was 1.47 percent higher to $827 and is set to settle the week 4.2 percent up. Platinum added 0.18 percent at $941.70 an ounce and silver advanced 0.16 percent at $17.25 an ounce.