Gold prices rebounded yesterday after falling to their lowest level in a month during the previous session, but the dollar’s strength put the precious metal on a weekly decline path as investors await the Federal Reserve’s meeting (the US central bank) next week.
During trading, spot gold rose 0.5% to $1,762.55 an ounce, while US gold futures rose 0.4% to $1,762.80 an ounce. The yellow metal lost 1.6 percent of its value during the week.
The dollar settled near a 3-week high yesterday, increasing the cost of gold to holders of other currencies.
And gold fell 2.7% the day before yesterday, after the dollar index jumped, while an unexpected increase in US retail sales last month reinforced expectations that the Federal Reserve will reduce its stimulus program sooner than expected.
The Federal Reserve’s Open Market Committee meets on September 21 and 22.
Silver settled at $22.94 an ounce, after hitting its lowest level in more than a month yesterday.
Platinum rose 1.1% to $942.76 an ounce, while palladium fell 1.3% to $2007.95 an ounce.