Gold’s luster fades with the rise of the dollar, but it is about to make a modest weekly rise

Gold prices fell on Friday, with the dollar restoring its upward trajectory, but expectations of a less sharp interest rate hike from the US Central Bank put the yellow metal on the path to achieving a small weekly gain.

And gold fell in spot transactions 0.2 percent to $ 1751.49 an ounce (an ounce) by 1201 GMT, retreating from the highest level in a week that it reached earlier in the session. Gold has risen 0.1 percent so far this week.

But US gold futures rose 0.4 percent to $1,752.10.

The dollar index rose 0.2 percent, making it more expensive for overseas buyers to hold dollar-denominated gold. But the US currency is on its way to record a weekly loss.

Craig Erlam, chief market analyst at OANDA, said that the minutes of the US Federal Reserve meeting for the month of November likely gave gold a boost to the rise, and if other data paved the way, that push would have enabled gold to rise again.

He added that gold appears to have stabilized in a range it has recently moved between $1,730 and $1,780.

Minutes of the November 1-2 meeting on Wednesday showed that a “significant majority” of Fed policymakers agreed that it “would soon be appropriate” to slow the pace of interest rate hikes.

Gold is a hedge against inflation, but high interest rates discourage investment in the precious metal, which does not yield a return.

Silver fell 1.1% to $21.28, but rose 1.8% for the week. Platinum in spot transactions fell 0.7 percent to $981.01 an ounce. Palladium fell 1.2 percent, recording $ 1,857.24, and is on its way to recording a weekly loss.