Gold is gaining momentum with the decline of US dollar ahead of US data

Gold rose on Thursday, supported by the decline in the dollar, but prices are expected to be trapped in a limited range as traders await economic data, seeking indications about the path of the Federal Reserve to raise interest rates.

And by 1029 GMT, spot gold rose 0.4 percent to $ 1882.14 an ounce. And US gold futures rose 0.1 percent to $ 1881.00.

The dollar index fell 0.4 percent against competing major currencies. Dollar weakness tends to make the yellow metal priced in it an attractive bet.

Market participants are awaiting US CPI data next week which could provide more clues on the Fed’s policy path. All eyes are also on the weekly jobless claims data in the US, which will be released at 1330 GMT.

Powell provided support for both sides’ expectations on Tuesday, saying that interest rates may need to be raised if the US economy remains strong, but reiterating that inflation is beginning to recede.

A handful of Fed officials said on Wednesday that more rate hikes are likely.

Gold is highly sensitive to rising US interest rates, as this increases the opportunity cost of holding the non-yielding asset.

As for other precious metals, spot silver rose 0.6 percent to $22.44 an ounce, platinum rose 0.4 percent to $973.44, and palladium rose 0.1 percent to $1,650.40.