Gold inched lower on Friday, yet was set for a weekly gain amid expectations G20 finance ministers and central bankers would not announce a coordinated policy stimulus.
The precious metal hit a high of $1240.15 an ounce, while currently trading around $1229.63 from the opening at $1231.96.
Asian shares rose on Friday, set for its second consecutive weekly advance, on rise in oil prices and after comments from China’s central bank chief Zhou Xiaochuan.
Crude oil reversed its losses on Thursday to finish the session higher at $33.05 a barrel, while it resumed its rise today to $$33.32.
“China still has some monetary policy space and monetary policy tools to address potential downside risk,” China’s central bank Chief said.
However, there are lower predications that G20 finance leaders would announce new stimulus plans.
The dollar rose slightly against a basket of major currencies to 97.45 from the session’s opening at 97.32, according to the dollar index.
Federal Reserve Bank of Atlanta President Dennis Lockhart warned that raising interest rates would undermine bank profits.
“Rising rates will create challenges in managing net interest margins and risks,” Lockhart said.
Gold is set for a weekly gain on higher inflows into gold’s exchange traded funds since the beginning of the year.
This week, assets of SPDR Gold Trust, the biggest bullion ETF, climbed to the highest since March 2015.
