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Gold Rises on Slowdown in U.S. Inflation

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Friday as slowdown in U.S. inflation continues to influence the market.

The most active gold contract for August delivery rose 0.60 U.S. dollars, or 0.03 percent, to close at 1,964.40 dollars per ounce.

Slowdown in U.S. inflation triggers market expectation for a more dovish Federal Reserve, dampening the U.S. dollar, which in turn supports gold.

Economic data released Friday, nevertheless, capped gold’s rising. The U.S. Labor Department reported that U.S. import prices fell 0.2 percent in June, compared to a 0.1-percent decline expected by economists. Import prices have fallen every month of the year except April.

The preliminary reading of the University of Michigan consumer sentiment index rose to 72.6 in early July from 64.4 in June. Economists expected the indicator to be at 65.5.

Investors are looking forward to the July 26 Federal Open Market Committee meeting for another potential rate hike.

Gold rose nearly 2 percent for the week.

Silver for September delivery rose 24.50 cents, or 0.98 percent, to close at 25.194 dollars per ounce. Platinum for October delivery rose 0.90 dollars, or 0.09 percent, to close at 984.30 dollars per ounce.