Gold rose past $2,350 per ounce on Friday, as investors continued assessing the Federal Reserve’s monetary policy direction following mixed results from recent economic data. The US GDP growth for the first quarter missed expectations and was the most sluggish expansion in nearly two years. However, the acceleration in consumer inflation reinforced speculations that the Fed will hold its restrictive monetary policy for longer. Higher rates decrease the appeal of gold, yet increasing price pressures boost its attractiveness as a hedge against inflation. Investors’ focus is now on March PCE figures later in the day for clearer cues on the Fed’s monetary policy outlook. Over the week, the bullion is poised for nearly 2% decline, the first drop in six weeks.
