Gold holds weekly gain as dollar extends drop on risk sentiment

Gold holds weekly gain as dollar extends drop on risk sentiment

Gold edged higher to build on last week’s advance as the dollar declined amid buoyant risk sentiment in other markets. European stocks and US futures gained on Monday after China relaxed some of the strictest virus controls of the pandemic. The greenback retreated as demand for the haven currency diminished. That supports bullion, which is priced in dollars. The precious metal rose last week on signs the Federal Reserve’s tightening path may not be as aggressive as feared. The personal consumption expenditures price index, a gauge favoured by the Fed, showed inflation cooling in April from March, according to data released Friday, while minutes of the central bank’s latest meeting were less hawkish than expected. Bullion has risen past $1,850 an ounce in the second half of May as concerns about aggressive Fed rate hikes are balanced by the possibility they’ll lead to a recession in the US. Investors will be keenly focused on economic data like the US jobs report on Friday, which is projected to show labour markets cooling slightly. There are also purchasing managers reports coming worldwide, including from China. “The gold price has held up very well considering that bond yields have risen sharply this year