After American job data rekindled optimism that the Federal Reserve may be less strict in the future when raising interest rates, the precious metal rose 3% on Friday while the currency sank by almost 2%.
On Friday, four Federal Reserve policymakers said they were still debating whether to raise interest rates at their upcoming monetary policy meeting.
Although gold is a strategy to protect against inflation, assets that are not dependent on it are less appealing due to high interest rates.
Price update As of 04:49 GMT, the price of gold in immediate trades was $1672.99 per ounce.
US gold futures reached a settlement of $1676.30.
Matt Simpson, an analyst at City Endex, said that it is customary to see the prices fall against a large movement from the previous session, as gold is declining with the dollar’s rise slightly.
The dollar index recovered some of its losses to 0.2%.
In quick trading for other precious metals, silver rose 1.3% to $20.56 for an ounce, platinum declined 1% to $951.46, and palladium dropped 0.5% to $ 1871.00.
When the dollar’s strength is restored, gold loses some of its lustre.
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