Bullion for immediate delivery traded near US$2,356 an ounce after rising by more than 1% this week. Silver has also benefited from the upswing, advancing back above US$30 an ounce.

Reports on Wednesday showed the American services sector contracted at the fastest pace in four years, while the labour market saw further signs of softening. If inflation continues to trend lower, the slowdown could allow the Fed the scope to reduce borrowing costs, aiding gold as it doesn’t pay interest.

Gold’s push higher this week extends a run of three quarterly gains, with prices hitting a record in May. The rally has been driven by central-bank purchases and geopolitical tensions.

Buying in Asia has also been supportive as local currencies fell, prompting investors to seek assets that preserved their value.

Spot gold was steady at US$2,356.49 an ounce at 8:03am in Singapore, with the Bloomberg Dollar Spot Index and 10-year US Treasury yields both on course for weekly declines.

Silver’s up more than 4% this week, while platinum and palladium have also gained ground.