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Gold rises on uncertainty over US rate hike

Gold rises on uncertainty over US rate hike
Gold

Gold edged back above $1,200 an ounce on Friday but stayed on track for a second straight weekly drop as a run of downbeat U.S. data fuelled uncertainty over the timing of a Federal Reserve rate rise.

Gold is sensitive to US monetary policy, as rising rates would boost the dollar, in which the metal is priced, while lifting the opportunity cost of holding non-yielding bullion.

Spot gold was up 0.6% at $1,204.60 an ounce at 0910 GMT, while U.S. gold futures for June delivery were up $6.30 an ounce at $1,204.30.