Gold rises, posts weekly gains

Gold prices settled higher on Friday, with the precious metal posting a weekly gain as expectations of tighter US monetary policy eased, weighing on the dollar.

Expectations that the Federal Reserve will keep interest rates unchanged at its September meeting strengthened after data released on Friday showed an unexpected decline in US retail sales in July, signaling a slowdown in consumer spending.

This followed last week’s July employment report, which pointed to potential weakness in the labor market, alongside easing inflationary pressures, according to consumer and producer price data released this week.

Commerzbank analysts said in a note that expectations the Fed will refrain from raising interest rates next month mean gold prices remain poised for further gains.