Gold rises with the decline of USD, but it is heading to record the third weekly decline

Gold prices rose on Friday, September 2 as the dollar retreated from its recent peaks. Still, the precious metal faces its third consecutive weekly loss amid expectations that the US Federal Reserve will stick to its hawkish stance in raising interest rates.

And gold rose in spot transactions 0.4%, recording $ 1702.49 an ounce by 0801 GMT, but it remained down by about two percent since the beginning of the week.
US gold futures rose 0.3% to $1,714.80.

The dollar index fell 0.2%, but not far from its highest level in 20 years, which was recorded in the previous session, as investors await US employment data, which may affect interest rate expectations.

US non-farm payrolls data is due at 1230 GMT. The market expects the data to show an addition of 300,000 jobs in August, which may indicate the continued strength of the labor market and reinforce expectations that the Federal Reserve will choose to raise interest rates by 75 basis points this month.

Data on Thursday, September 1, showed that the number of Americans who filed new applications for unemployment benefits fell last week to the lowest level in two months, while the number of layoffs fell in August.

Gold is seen as a hedge against inflation and economic uncertainty, but high-interest rates increase the opportunity cost of holding it.

As for other precious metals, silver rose in spot transactions 0.5% to $ 17.94 an ounce, platinum increased 0.3% to $ 830.80, and palladium jumped 1.6 percent to $ 2045.47.

Prices are also heading for the third consecutive weekly decline.