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Gold hovers below seven-week top, turns up as dollar slips

The price of gold turned higher on Friday, hovering below the prior session's seven-week top as the U.S. dollar weakened and U.S. Treasury yields came off their highs, with the metal on track for a third straight weekly gain. 

 

The greenback and yields were initially higher on the back of strong U.S. retail sales, which reinforced the prospect of the Federal Reserve raising rates this year, perhaps sooner than previously expected, traders said.

 

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Spot gold was 0.2 % higher at $1,197.99 an ounce by 3:09 p.m. EST (2009 GMT). It was up 2.1 % on the week. U.S. gold futures settled down 0.3 % at $1,196.20 per ounce, ahead of the U.S. holiday on Monday, when the market will close early.

Gold price has risen 6.5 % since a mid-December low and on Thursday reached its highest level since Nov. 23, after President-elect Donald Trump failed to elaborate on his plans to cut taxes and boost infrastructure spending. 

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