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Gold prices hovered near an all-time high on Friday, set for weekly gains on a weaker dollar, while investors focused on U.S. economic data that could provide additional insights into the Federal Reserve’s interest rate decision.
Spot gold was steady at $2,558.19 per ounce by 0051 GMT, up 2.5 percent so far this week.
The precious metal rose more than 1 percent in the previous session and hit a record high, after U.S. data pointed to an economic slowdown.
U.S. gold futures rose 0.2 percent to $2,586.60.
The dollar fell 0.3 percent, making gold less expensive for holders of other currencies.
U.S. producer prices rose slightly more than expected in August, but the trend remained consistent with falling inflation, data showed on Thursday.
In the labor market, data showed that the number of Americans filing new applications for unemployment benefits rose slightly last week.
The International Monetary Fund said yesterday that it is appropriate for the Federal Reserve to begin a long-awaited monetary easing cycle at its meeting next week as inflation risks recede.
Lower interest rates enhance the appeal of gold, which does not pay a return, as a safe haven.
Among other precious metals, spot silver rose 0.1 percent to $29.94 an ounce, platinum rose 0.8 percent to $985.20, and palladium rose 0.8 percent to $1,055.64.
