Prices for gold rose over 1% on Friday to a more than one-week high as a weaker dollar boosted demand for the yellow metal, even as U.S. Federal Reserve policymakers vowed to raise interest rates to tame inflation pressures.
Spot gold rose 1.2% to $1,727.40 U.S. per ounce. Bullion was heading for its first weekly gain in four, up about 1% so far this week. U.S. gold futures gained 1.1% to $1,739 U.S.
The U.S. dollar dropped over 1% to its lowest in more than a week, making greenback-priced bullion less expensive for overseas buyers. The European Central Bank delivered a 75-basis-point rate hike on Thursday, while hawkish remarks from Fed Chair Jerome Powell cemented bets of a large interest rate hike at Fed’s Sept 21-22 policy meeting.
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