Gold prices on the European market rose on Friday to bounce from the lowest level of the week's dealings, in a bid to reduce its losses throughout the week, based on a temporary pause to climb the US dollar against a basket of global currencies.
Gold prices rose by 0.15% to 08:35 GMT to deliberate at the level of $1318.30 of the 1316.27 from the opening level, registering the highest level of $1318.86, and the lowest level $1313.77 this week.
Gold prices fell yesterday by 0.7 percent, on the second consecutive daily loss, with most of the prices of metals denominated in US dollars falling, coinciding with weaker investment demand for precious metals as a safe haven.
Over the course of the current week, gold prices have so far lost 0.5%, the third weekly loss being recorded within a month, and prices are trying to reduce that loss at present, based on the temporary suspension of the US currency against a basket of currencies.
The dollar index fell on Friday by 0.2%, in a way to record the first loss in three days, reversing the rise of the US currency temporarily against a basket of currencies, which supports the rise in prices of minerals and commodities currently denominated in dollars.
This temporary retreat of the American currency comes after a strong two-day gain, which has been achieved with the concentration of investors on the meeting of the Federal Reserve next week, which is expected to raise interest rates by a quarter percentage point to a range of 1.75%, in the first increase in interest rates American out of three expected increases this year.
Gold holdings of the SPDR Gold Trust, the world's largest gold-supported indicator funds increased yesterday by 4.42 metric tons, the first daily increase in two weeks, bringing the total holdings to 838.15 metric tons, the highest level since 31 January last January.