Gold prices rose today, on Friday, helped by the weaker dollar and the US Treasury’s returns, but the likelihood of yet another major rise in interest rates in the US left the precious metal headed toward a weekly fall.
At 04:02 GMT, the price of gold in instant transactions increased by 0.2% to $166.46 per ounce. This week’s prices have fallen by 1.6%.
The price of gold futures in the US dropped by 0.1 percent to $166.80.
In the meantime, US Treasury Bonds returned for 10 years rather than the 14-year top that hit it on Thursday, making gold less expensive for buyers abroad. This was made possible by the 0.2% decline in the dollar index.
On Thursday data showed that consumer prices in the United States increased more than expected in September, with the rise in rents in the largest amount since 1990 and the high cost of food, as well as the basic consumer price index jumped 6. 6% on an annual basis.
At the conclusion of its meeting on November 1-2, dealers expect the Federal Reserve (the US Central Bank) to increase interest rates by 75 basis points for the fourth consecutive time.
Gold has historically been used as a hedge against inflation and economic unrest, but the high interest rates used to combat inflation have made the precious metal less appealing because it does not generate a guaranteed return.
In short-term contracts, silver rose 0.6% to $18.
98 per ounce and is on track for its biggest weekly drop since August.
Platinum increased 0. 5% to 900. 49 dollars, and the pulpium 0. 9% to 2125. 50 dollars, each heading towards registration of the first weekly decrease in three weeks..
Despite its advances today, gold is set to post a weekly loss.
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