Gold stabilizes after heavy selling, but is heading for a weekly decline

Gold prices stabilized on Friday after heavy selling in the previous session, as traders absorbed the statements of global central banks regarding raising interest rates, but the yellow metal is heading to record its first weekly decline in seven weeks in light of the strength of the dollar.

And by 0233 GMT, spot gold rose 0.2% to $1916.31 an ounce, after falling 2% amid Thursday’s selling, driven by the rise in the dollar and profit-taking.

US gold futures contracts were little changed, recording $1915.80.

Gold prices have gained about $300 since November thanks to expectations the Federal Reserve will raise interest rates at a slower pace, as a low interest rate environment reduces the opportunity cost of holding non-yielding precious metal.

After the US central bank raised interest rates by 25 basis points, after a year of sharp increases, both the European Central Bank and the Bank of England raised interest rates by 50 basis points on Thursday as expected.

Meanwhile, the dollar rose 0.1 percent, which curbed gold prices.

As for other precious metals, silver rose in spot transactions 0.3 percent to $ 23.5232 an ounce, while platinum fell 0.1 percent to $ 1020.51, and palladium increased 0.1 percent to $ 1655.60.