Gold edged higher on Friday, poised for a second weekly gain, as a weaker dollar provided some relief from rising U.S. bond yields and anticipation that central banks will begin to ease economic assistance. Bullion prices were on their way to a second week of increases, helped by a weaker dollar that was expected to fall this week. Bullion prices have been trading in a wide range of $1,749 to $1,800 so far this month, with the upside limited by a strong rise in U.S. benchmark 10-year Treasury yields.
Fed Governor Christopher Waller said on Thursday that the US Federal Reserve should let its $8 trillion balance sheet shrink over the next few years. Raphael Bostic, president of the Atlanta Fed, also stated that he expects strong inflation to continue through 2022, and that the Federal Reserve should raise interest rates by the end of the year. If infections in Japan continue to decline, the Bank of Japan is considering phasing out a Covid-19 lending program, sources told Reuters, potentially allowing the bank to exit a major crisis-mode policy sooner than investors expect.
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