July 14 (Reuters) – Gold dipped as investors booked profits after bullion hit a near one-month high on Friday, but prices were on course for their biggest weekly gain since April on rising expectations of an imminent pause in U.S. interest rate hikes.
Spot gold was down 0.3% at $1,954.69 per ounce by 0734 GMT, but has gained 1.6% this week. U.S. gold futures eased 0.2% to $1,959.30.
The dollar index (.DXY) edged up 0.2% but held close to its lowest since April 2022.
Gold’s got room to sort of expand from here and the next major levels could be $1,985 to $2,000, said Matt Simpson, a senior market analyst at City Index.
Data on Thursday showed U.S. producer prices barely rose in June, providing more evidence the economy had entered a disinflation phase, while jobless claims unexpectedly fell last week, indicating the labour market remained tight.
Overall, the outlook for bullion remains positive but prices could see some profit-taking at current levels, said Ajay Kedia, director at Kedia Commodities in Mumbai.
Federal Reserve Governor Christopher Waller said on Thursday he was not ready to call an all-clear on inflation and favours more rate hikes this year.
The markets, however, have mostly priced in one rate hike at the Fed’s July 25-26 meeting, but the odds of further increases have dropped.
Higher interest rates increase the opportunity cost of holding non-yielding bullion.
“The near-term range looks to have shifted higher. There is now some decent support around the $1,940 level, while resistance awaits in the $1,970-75 region,” said Tim Waterer, chief market analyst at KCM Trade.
Spot silver fell 0.6% to $24.7105 per ounce, but was set for its biggest weekly gain since March.
Platinum dropped 0.9% to $964.19, palladium lost 1.3% to $1,278.07, but was poised for a second straight weekly rise.
Reporting by Arundhati Sarkar in Bengaluru; Editing by Krishna Chandra Eluri, Sherry Jacob-Phillips, Sonia Cheema and Savio D’Souza
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