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    18:48pm 19th May 2017

    Gold Clings To Weekly Gains On Dovish Fed Comments

    WASHINGTON (Alliance News) – Gold futures were flat Friday, after a Federal Reserve official said inflation was too weak to justify raising interest rates.

    Inflation readings “are weak, they’ve come down and they are too low for the Fed to reach its inflation target,” St. Louis Fed President James Bullard said in comments at the Association for Corporate Growth. “They’ve gone in the wrong direction and a little bit too sharply for comfort.”

    Despite Bullard’s dovish comments, the Fed is expected to raise interest rates in June.

    US stocks rebounded today after big losses earlier in the week, as traders downplayed the recent chaos surrounding the Trump Administration.

    June gold gained 80 cents, or less than 0.1%, to settle at USD1,253.60/oz, for a weekly gain of 2.1%.

    Prices touched their highest in a month earlier this week, but have leveled off on renewed risk appetite.

    Copyright RTT News/dpa-AFX