Gold closed higher on Friday following three days of losses that pushed the price of the precious metal to a three-month low, as investors moved to safe havens to cut risk amid rising interest rates.
Gold for August delivery closed up US$5.90 to settle at US$1,929.60 per ounce.
Gold had weakened following on two days of congressional testimony from Federal Reserve chair Jerome Powell, who said the central bank is likely to raise interest rates by 50 basis point before the end of the year. Powell's comments came as central banks in the United Kingdom, Norway and Switzerland all raised their interest rates to lower inflation. Higher interest rates raise the carrying cost of gold, which offers no yield.
The dollar rose, making gold more expensive for international buyers. The ICE dollar index was last seen up 0.46 points to 102.87.
Source: MTN newswires
