Gold heads for first weekly gain in a month near £3,020 an ounce

Gold is on course for its first weekly rise in about a month, holding near $4,050 an ounce. In sterling that is roughly £3,020 at an exchange rate close to 1.34 (this figure is approximate), or about £97 a gram. The metal has steadied after dipping to a two week low earlier in the week.

Two forces are helping. Softer United States inflation data has led traders to trim bets on another interest rate rise at the Federal Reserve meeting later this month, and lower rates tend to support gold because they reduce the appeal of interest paying savings. A slightly weaker dollar also makes dollar priced metal a little cheaper for buyers holding pounds.

Beneath the daily moves, central banks keep buying. China's central bank added to its gold reserves again in June, part of a longer run of official purchases that many analysts see as a floor under the price. Silver, which draws much of its demand from industry, held below $60 an ounce, about £43.

For a first time UK buyer, the spot price is only a starting point. The all-in cost is spot plus the dealer premium and any delivery or storage, so it pays to compare the full price across sellers. This is not financial advice.