Gold firms after heavy selling, but heads for weekly decline

Gold prices stabilized today, 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.

By 0233 GMT, spot gold rose 0.2 percent to 1916.31 dollars an ounce, after it fell 2 percent amid selling operations on Thursday, driven by the rise in the dollar and profit-taking.

According to “Reuters”, US gold futures contracts did not witness a significant change, recording $ 1915.80.

Gold prices have gained about $ 300 since November, thanks to expectations that the Federal Reserve (the US central bank) will raise interest rates at a slower pace, as the low interest rate environment reduces the opportunity cost of possessing the precious metal that does not yield a return.

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.