Gold heads for fourth straight weekly gain
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* Biden to seek $6 trillion in federal spending for FY 2022-report (Recasts, adds comments, and updates prices)
May 28 (Reuters) – Gold prices edged lower on Friday, as an uptick in the dollar and U.S. Treasury yields weighed on the safe-haven metal, while investors awaited crucial U.S. inflation data due later in the day to gauge inflationary pressure.
Spot gold was down 0.2% at $1,893.07 per ounce by 0308 GMT. Bullion has risen 0.7% so far this week, and was on track for its fourth straight weekly gain.
U.S. gold futures eased 0.1% to $1,896.20.
“Gold has been a little bit on the defensive side. Technically it was very overbought, and on the fundamental side, the dollar had a big move up yesterday and that started to impact gold,” ED&F Man Capital Markets analyst Edward Meir said.
“Gold is likely to consolidate around this $1,900 mark for a little while longer. Maybe with the next set of numbers that are more inflationary we could start another move up.”
The dollar index was up 0.1% against rivals, while the U.S. 10-year Treasury yield rose to 1.617%, aided by strong U.S. economic data.