Gold was trading higher on Friday, trading towards a two-month high and heading for the first back-to-back quarterly climb since 2011 as investors weighed signs of an uneven US economic recovery.
Gold Futures bounced back from its weekly low of $1,308.00 an ounce on Thursday and Wednesday and was trading 0.36% higher at $1,321.70. Gold for August delivery added 0.1% to $1,318 on the Comex in New York.
Silver futures edged 0.32% higher, trading at $21.050 an ounce, while copper metal traded 0.07% higher at $3.164 a pound at the time of writing.
The US dollar slid to a seven-week low against a basket of 10 major currencies after reports from the US showed that the world’s largest economy shrank more than expected in the first quarter, while durable orders fell.
The yellow metal has risen by 6% this month and is set for its first back-to-back quarterly gain since 2011, as the tension in Iraq and Ukraine boosted demand for a haven.
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Last week, bullion advanced as the US Federal Reserve announced that it will maintain its interest rates at almost zero and trimmed its bond purchases for the fifth time in a row as the world’ s largest economy improves. Bullion dropped by 28% last year on speculations that the Federal Reserve will cut its asset purchases as the US economy recovers.
On Thursday, Fed Bank of St. Louis President James Bullard said that the economy is strong enough to withstand an increase in borrowing costs in the first quarter.The US may raise interest rates by the end of the first quarter in 2015, Bullard said in an interview with Fox Business Network.
The Federal Reserve has forecasted that both key inflation rates would remain below 2% over the next two years.
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