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MORNING BELL: Gold edges up on softer dollar

The dollar was mixed on Friday with month-end selling after a recent rally, as traders saw little in weak first-quarter U.S. gross domestic product data to discourage bets the Federal Reserve will start raising interest rates in 2015. The dollar was off 0.40%, at $1.0989 against the euro, which was benefiting from hopes a deal may soon be reached between Greece and its creditors. The dollar rose 0.05% against the Canadian dollar, which was stung by data showing the country's economy shrank in the first quarter.

A surge in the price of crude oil helped keep the Canadian dollar steady on Friday, shrugging off data showing the Canadian economy contracted in the first quarter. While bond markets rose after the gross domestic product data on bets that there is more of a chance that the Bank of Canada will cut interest rates this year, the currency's early-session losses were canceled out as crude oil prices jumped almost 5% on Friday.

Gold edged up on Friday from the previous day's 2.5-week low, supported by a softer dollar and uncertainty over Greece's debt talks, but remained under pressure from expectations that U.S. interest rates might rise soon. Spot gold was up 0.3% at $1,190.70 an ounce at 14:33 EDT (18:33 GMT), on track to close May up 0.6%, the second straight small monthly increase. U.S. gold futures for June delivery settled up $1.30 an ounce at $1,189.40.

 

 



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