WASHINGTON (dpa-AFX) - Gold prices rose on Friday but remained on track for a sharp weekly decline due to easing of tensions in the Middle East and fading rate-cut hopes.
Spot gold climbed 0.7 percent to $2,349.32 per ounce but was down nearly 1.5 percent for the week. U.S. gold futures were up 0.8 percent at $2,361.05.
The dollar drifted lower in early European trade, helping gold prices recover some ground.
The 10-year U.S. yield rose to the highest since November and the 2-year yield topped 5 percent on Thursday after new data showed slowing GDP growth but strong inflation, raising fears of stagflation.
Data showed that U.S. GDP slowed to 1.6 percent annualized in the first quarter after surging by 3.4 percent in the fourth quarter of 2023.
Core inflation came in stronger at 3.7 percent in Q1, picking up from a 2 percent annualized rate and pushing out rate-cut bets to December.
Trading later in the day may be influenced by reaction to the Commerce Department's report on personal income and spending, which includes readings on inflation said to be preferred by the Federal Reserve.
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