World gold prices edged up before closing the last trading session of the week, as oil prices cooled down and US government bond yields fell, thereby creating more support for the precious metal.
The gold market was supported when the yield of 10-year US government bonds fell to 4.678%, after previously hitting a 18-month high. Meanwhile, the USD index (DXY) maintained around 101.47 points, near a recent high, continuing to limit gold's upward momentum.
Pressure from the energy market also somewhat eased. Brent oil prices fell to 96.78 USD/barrel, after exceeding 102 USD/barrel at one point, while WTI oil was around 85.15 USD/barrel. Oil prices fell to somewhat ease concerns about inflation - a factor that had put significant pressure on gold in previous sessions.
US economic data continues to show the economy maintaining resilience. Business activity in July increased to the highest level in 8 months, new home sales increased in June, while the number of initial jobless claims previously announced was 187,000.
The market is still mainly expected that the US Federal Reserve (Fed) will keep interest rates unchanged at next week's meeting, although the possibility of unexpected interest rate hikes has not been completely eliminated.
