Gold rises in price, but completes the worst week in two months

LONDON (Reuters) - Gold rises in price on Friday after two days of losses, but is preparing to finish the week strong drop in two months due to growing expectations of US interest rates next month.

The dollar fell from a high of nearly two months against a basket of currencies, but is preparing to finish in positive territory the third consecutive week, keeping the pressure on gold.

Gold in 14.55 MSK traded at $ 1.256,66 per ounce compared to US $ 1.254,10 at the close of trading on Thursday. Spot prices fell 1.5 percent this week and finish in the red the third consecutive week.

Futures in the US rose by $ 3.0 to $ 1.257,80 per ounce.

"Given that the dollar has strengthened, it is no wonder that precious metals have lost part of the recent growth, - said an analyst at Saxo Bank Ole Hansen. - However, gold managed to find support at a key level of $ 1.245. Negative rates and the prospect of higher inflation will continue to support the price".

President of the Federal Reserve Bank of New York Uilyam Dadli said on Thursday that the central bank officials have a feeling that the markets underestimate the probability of policy tightening.

This happened the day after the publication of the minutes of the April meeting of the Fed, whose members believed that the US economy may be ready for another rate hike in June.

The price of gold is very sensitive to an increase in rates, as this increases the opportunity cost of owning the metal.

The assets of the world's largest gold exchange-traded fund (ETF) SPDR Gold Shares rose on Thursday to 4.5 tons to a maximum with November 2013.

Demand for gold in Asia remains sluggish this week against the background of strengthening the dollar and weak seasonal demand in major shopping centers.

Silver traded at $ 16.555 an ounce, compared with $ 16.48 for the close of trading on Thursday, platinum worth $ 1.020,40 compared to $ 1.009,50, and palladium - $ 560.00 versus $ 554.50.