Gold is heading to mark a weekly rise due to the decline in the dollar and amid inflationary risks

Gold rose this Friday and was heading to close its best week since mid-November, as the dollar weakened and attention returned to inflationary risks after the measures of central banks in the world to withdraw the stimulus applied during the pandemic.

At 0940 GMT, spot gold was up 0.5% to $ 1,807.19 an ounce, while US gold futures were up 0.6% to $ 1,809.70. The metal has added about 1.4% this week.

The dollar index was headed for a weekly decline after it hit a week-long low on Thursday, after the Federal Reserve said it sees three interest rate hikes before the end of 2022, making the bullion cheaper. for holders of other currencies.

Analysts said gold rose despite the possibility of higher interest rates in the United States – which increases the opportunity cost of owning bullion – because the prospects for rate hikes had been discounted before the Fed’s announcement.

“Inflation dynamics have continued to push investors toward gold as a key store of value“Said IG Markets analyst Kyle Rodda.

Britain on Thursday became the first G7 economy to raise interest rates since the start of the pandemic. The European Central Bank only slightly reduced its stimulus.

The Bank of Japan decided on Friday to reduce its corporate debt purchases to pre-pandemic levels.

Among other precious metals, silver was up 0.6% to $ 22.60 an ounce, palladium was up 2.4% to $ 1,770.80 and platinum was down 0.1% to $ 935.48.