Gold prices were on the rise Friday as traders looked ahead to next week’s Federal Reserve policy meeting.
Spot gold traded 0.3% higher at $1,724.37 U.S. per ounce. Prices on Thursday fell to their lowest level in more than a year at $1,680.25 U.S. before ending 1.3% higher. The shiny yellow metals has gained 0.7% so far this week.
U.S. gold futures rose 0.5% to $1,723.40.
The European Central Bank joined its global counterparts in the fight against soaring inflation as it raised interest rates by more than expected, despite the euro zone economy suffering from the impact of war in Ukraine.
Investors now expect the U.S. Federal Reserve to raise interest rates by 75 basis points at its July 26-27 policy meeting. Rising U.S. interest rates increase the opportunity cost of holding non-yielding bullion, while also boosting the dollar, which again makes gold expensive for overseas buyers.
