Precious-Gold hovered near its highest level in two months on Friday, set for its fourth straight weekly gain, as the drop in dollar spurred demand on the metal as an alternative investment.
Data released yesterday from the U.S. signaled that U.S. initial jobless claims dropped to 312,000 in the week through June 21 from a revised of 314,000 a week before, compared to analysts’ forecast of 310,000.
Personal spending edged up 0.2 percent in May from a prior of 0.0 percent in April, lower than projections of 0.4 percent.
The data added lowered speculations the Fed may raise interest rates earlier than market anticipations.
Accordingly, the dollar plunged against a basket of major currencies, headed for a second weekly decline.
The dollar index retreated today to hover around 80.20 after touching a bottom of 80.13.
Gold is currently trading around $1317.11 after touching a high of $1322.07 and a low of $1315.26.
The metal faced some sell off after touching a peak of $1325.68 on Tuesday a breach to this level is needed to help the metal continue its rally.
Now, the shiny metal is headed for a monthly gain in June, where it has gained 5.4 percent so far.
The violence in Iraq and Ukraine is also spurring haven demand on metal, noting that it helped that metal to hit its highest this year of $1392.08 in March.
On the physical side, volumes for the benchmark spot contract on the Shanghai Gold Exchange soared to 23,307 kilograms on June 24, the most since February 10.
Crude oil for August’s delivery inched up to trade around $105.80 a barrel from the session’s opening of $105.64.