(Reuters) – Gold prices edged above $940 to a one-week high on Friday as firmer oil prices supported bullion’s appeal as a potential hedge against oil-led inflation.

The precious metal has gained about 1 percent this week after touching a six-week low on Tuesday, a point traders said was a consolidation level.

Gold’s upside may be tested next week as sentiment has improved, with the dollar losing its upward momentum and commodities rising, while there are still fears that inflation will continue, traders said.

“There is some bullish sentiment in the market and prices may move higher next week,” said a Hong Kong-based banker.

“The dollar is weakening while commodities are rising, and there are some worries that interest rates may rise. Inflation concerns could push up gold,” the banker said.

Spot gold rose to a high of $942.60 per ounce, up 0.4 percent from New York’s notional Thursday close of $938.55, and its highest since June 18.

It traded at $941.40 at 0550 GMT.

Gold prices turned around after falling to a low of $912.90 on Tuesday, their lowest in six weeks, suggesting the market has confirmed a floor for now, the manager said.

U.S. gold futures for August delivery rose 0.3 percent to $942.10 per ounce, compared with Thursday’s settlement of $939.50 on the COMEX division of the New York Mercantile Exchange.