Gold prices edged up on Friday, on hopes a U.S. stimulus package would eventually be passed, boosting the metal’s appeal as an inflation hedge, although a stronger dollar capped gains.
Spot gold rose 0.1% to $1,906.29 U.S. per ounce, after slipping more than 1% in the previous session. Bullion is up 0.4% this week.
U.S. gold futures rose 0.2% to $1,907.50 per ounce.
U.S. House Speaker Nancy Pelosi on Thursday said negotiators were making progress in talks with the White House over the coronavirus fiscal aid package and a deal could be reached in her words, “pretty soon.”
Gold has risen over 26% this year benefiting from massive stimulus by governments and major central banks to cushion economies from the pandemic.
Elsewhere, silver fell 0.6% to $24.60 U.S. an ounce, but was set for a weekly rise of 1.8%. Platinum was little changed at $884.55 U.S. and palladium rose 0.8% to $2,392.93 U.S.