Commodity Capsule: Oil prices rose on Friday, on track to end higher this week after two straight weeks of losses.

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Brent crude futures gained past $89 a barrel. US WTI crude futures rose to $84 a barrel.

For the week, Brent has gained 2.3 per cent so far, while WTI is up 0.8 per cent.

Treasury Secretary Janet Yellen told Reuters on Thursday that U.S. GDP growth for the first quarter could be revised higher, and inflation will ease after a clutch of "peculiar" factors held the economy to its weakest showing in nearly two years.

US economic growth was likely stronger than suggested by weaker-than-expected quarterly data, she said.

Data showed that economic growth slowed in the first quarter, and prior to Yellen's comments, tremors from an acceleration in inflation had weighed on oil prices as investors calculated that the Federal Reserve would not cut interest rates before September.

Elsewhere, supply concerns as geopolitical tensions continue in the Middle East also buoyed prices early in the session.

Israel stepped up airstrikes on Rafah after saying it would evacuate civilians from the southern Gazan city and launch an all-out assault despite allies' warnings this could cause mass casualties.

According to Citi, the global oil market has seen significant stock builds, averaging nearly 1 million barrels per day during the first quarter of 2024, a trend that has continued into April 2024.

Gold was little changed on Friday ahead of the US inflation report, but prices were on track for 1st weekly drop in six weeks on easing concerns of a major escalation of the Middle East crisis.

US gold futures rose to $2,350.

For the week, prices were down 2.3 per cent, set for their biggest weekly drop since early December, after a major escalation in the Middle East crisis was avoided. 

Prices were down nearly $100 from an all-time high of $2,449 scaled on April 12.

US economic growth slowed more than predicted in the first quarter

The increase in inflation underlined recent remarks from Federal Reserve members implying the central bank was in no urgency to cut interest rates.

Focus now turns to March's core Personal Consumption Expenditures index data due later on Friday for further clues on the US rate outlook.

Iron ore futures prices ticked down on Friday, pressured by higher portside inventories in China, although a pick-up in demand capped losses.

Prices of the key steelmaking ingredient, however, are heading for a third weekly gain on the back of improved demand and stimulus hopes.

DCE September iron ore contract dropped to 878 Yuan/metric ton but posted over a one per cent rise week-on-week.

SGX May iron ore hovered $117 a ton level. It notched a 1.1% rise so far this week.

LME copper crossed the key of $10,000, and heading for a fifth weekly gain. The red metal is hovering two year high.

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