(MENAFN- ProactiveInvestors - UK) The price of gold added more than US$30 this week as the US dollar, which has an inverse relationship with the yellow metal, fell amid expectations of stimulus action by the Federal Reserve.
This week's US data disappointed, fuelling speculation that the Fed could consider launching another round of quantitative easing at its upcoming policy meeting, which will kick off next Tuesday.
On Friday, the Federal Reserve revealed that its Empire State manufacturing index slumped to 2.3 this month from 17.1 in May, hitting the lowest level since 2011.
A separate report from the Fed said industrial production in the US fell 0.1 percent in May, while expectations were for a small increase.
In addition, the initial April estimate was revised to show growth of one percent, down from 1.1 percent previously.
Thursday's employment data also disappointed. The Department of Labor said initial claims for unemployment benefits rose 6,000 to 386,000 last week, indicating that the job market recovery remains sluggish.
While it has been suggested that QE3 could be on the cards, it is widely expected that the Fed will extend the so-called Operations Twist â€" a programme of selling short term securities and buying Teasurys maturing in more than six year to keep long term rates low.
Gold closed at US$1,626/oz on Friday, up US$32 from a week earlier. Silver advanced from US$28.68/oz to US$28.74.oz and platinum rose from US$1,427/oz to US$1,480/oz.
Randgold Resources (LON:RRS) surged from 5,625 pence to 5,970 pence over the past five days of trading and fellow FTSE 100 constituent, silver miner Fresnillo (LON:FRES), rallied from 1,442 pence to 1,532 pence.
In the FTSE 250, platinum miner Lonmin (LON:LMI) rose from 747.5 pence to 759 pence, while gold producer African Barrick Gold (LON:ABG) held steady at 399 pence.
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