Gold prices rise, record weekly gain of over 2%

Gold bars

Gold prices extended rally on Friday, recording their second straight weekly gains. This came amid a decline in US consumer confidence for the first time in six months, driven by growing concerns over inflation.

Gold futures for February delivery rose 0.9%, or $24.2, to $2,715 per ounce, with a weekly gain of 2.25%. 

The dollar index, which measures the performance of the US currency against a basket of six major peers, rose by 0.4% to 109.63 points at 10:43 pm Makkah time.

Gold's gains were limited by a rise in US Treasury yields, as data showed strength of the labor market in the world's largest economy. The US economy added 256,000 jobs in December, significantly exceeding expectations of 155,000 jobs.

The consumer confidence index, measures by the University of Michigan, dropped by 1.1% month-on-month to 73.2 points in January, compared with 74 points in December, against forecasts of unchanged rates.