Gold prices rose on Friday, resuming gains that were temporarily halted yesterday for the fourth consecutive weekly gain, supported by USD against a basket of world currencies affected by the weakness of the possibility of raising US interest rates this year. Investors later in the day are waiting for inflation data in United States.
Gold prices rose by 0.5% as of 0835 GMT to trade at $ 1,293.05 per ounce from the opening level of $ 1,286.53 and recorded the highest level of $ 1,295.14 and a low of $ 1,286.50.
Gold prices lost 0.5% on Thursday, after the recovery of the US currency levels, and the previous day rose by 0.6%.
Over the course of the week, gold prices so far rose by 0.6%, making their fourth consecutive weekly gain, among the longest weekly gain since late September, supported by weak US dollar and strong demand for safe haven assets.
The dollar index fell by 0.2% on Friday, resuming its losses, which were temporarily suspended yesterday as part of a 3-month low at 94.62 points, reversing the greenback against a basket of currencies.
The recent drop in US currency comes under pressure from the Federal Reserve’s rate hike this year, especially as data show that US economic growth slowed in the fourth quarter and cautioned some US policymakers.
Federal Reserve Chairman Jerome Powell said on Thursday that the US central bank has the ability to be patient about monetary policy despite the steady pace of inflation in the country.
In order to reassess those possibilities, investors are expected to see major US inflation data later in the day. The weakness of these data will further narrow those possibilities and push the US dollar against most currencies.
Gold holdings in the SPDR Gold Trust Fund The world’s largest gold-backed indices fell yesterday by 1.47 metric tons to 797.71 metric tons, down from the highest level since July 25, 2018 at 799.18 metric tons.