Gold is gaining lustre and hitting its highest level in more than a week

Gold prices rose more than 1% on Friday, September 9, to reach their highest level in more than a week, as a weak dollar boosted demand for the yellow metal, even as US Reserve policymakers pledged to raise interest rates to tame inflation pressures.

Spot gold rose 1.1% to 1726.80 an ounce by 0917 GMT. Gold is heading to achieve its first weekly gain in four weeks and rose about 1% this week.

US gold futures rose 1.1% to $1,738.1.

The dollar fell more than 1% to its lowest level in more than a week, making gold priced in dollars less expensive for holders of other currencies.

The US Federal Reserve is expected to raise interest rates by another 75 basis points on September 21.

Higher interest rates increase the opportunity cost of holding the non-yielding yellow metal and supporting the dollar.

The European Central Bank raised key interest rates by 75 basis points on Thursday.

As for other precious metals, silver rose in spot transactions 1.5% to $18.85 an ounce, and increased by 4.7% during the week.

Platinum rose 0.6% to $884.73 and is on track for its biggest weekly gain since June.

As for palladium, it rose 1.3 percent to $ 2165.72 and is heading to record the largest weekly gain since July.