Gold prices gained more than 1% on Friday as the dollar and Treasury yields retreated following comments from Federal Reserve Chair Jerome Powell that signalled an interest rate cut in September.

Spot gold rose 1.2% to $2,512.63 per ounce by 01:44 p.m. ET (1744 GMT), but was off a record high of $2,531.60 hit on Tuesday. U.S. gold futures settled 1.2% higher at $2,546.30.

Powell said "the time has come" for the U.S. central bank to cut interest rates and that inflation was nearing the Fed's 2% target, offering an explicit endorsement of an imminent policy easing.

The dollar index fell 0.8% against its rivals, while benchmark U.S. 10-year yields also declined following Powell's speech, making gold more attractive for other currency holders.

Source : Reuters