Gold is on course to achieve its first weekly gain in 3 weeks as the dollar retreats

Gold prices rose on Friday as the dollar fell, helping the yellow metal recover from its biggest two-day percentage drop in two weeks recorded in the previous session.

By 0620 GMT, spot gold rose 0.1 percent to $ 1293.67 an ounce after hitting a one-week low on Thursday. Gold futures gained 0.3 percent to $ 1,297 an ounce.

The dollar index, which tracks the performance of the greenback against a basket of major rivals, fell 0.2 percent, shedding gains in the previous session and heading for the first weekly drop in four weeks.

Strong corporate earnings will probably boost investors' appetite for high-risk assets, negatively impacting gold's appeal.

Gold fell more than 1 percent in the previous session after reports showed US jobless claims fell to their lowest level in nearly half a century and producer prices rose the most in five months in March.

Gold is heading for its first weekly gain in three weeks, after rising 0.2 percent since the start of the week. The metal rose to its highest level since the end of March earlier this week due to central bank positions tilted to monetary easing and concerns about global growth.

For other precious metals, silver rose 0.1 percent to $ 14.97 an ounce, but is still down about 0.6 percent during the week.

Platinum was up 0.6 percent at $ 892.68 an ounce and headed for the first weekly decline in five weeks.

Palladium rose about 0.4 percent to $ 1370.81 an ounce.


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