Gold edged slightly lower overnight on Friday, opening the day at 1267.75/1268.75. After the open, the metal touched a low of 1266.50/1267.50 before rising to a high of 1270.25/1271.25 as the dollar index fell to a weekly low.
U.S. inflation data will be in focus this week with the Federal Reserve having already flagged four interest rate hikes this year. The Fed’s preferred inflation measure; the core PCE price index is due on Friday.
The rupee settled at 68.01 to a dollar, its lowest since May 24, and against 67.62 at previous close. The currency fell to day's low of 68.03 but trimmed some losses after state-run banks and a private lender sold dollars,
Gold moved lower overnight on friday, opening the day at 1297.25/1298.25. After the open, gold tumbled to its lowest level this calendar year at 1275.00/1276.00 amidst a sharp selloff as the dollar hovered near its 7-month high.
The diverging monetary policy outlook between the Federal Reserve and the European Central Bank is likely to boost the dollar and weigh on the euro in the coming week, by making the dollar more attractive to yield-seeking investors.