Gold Applauds Dollar's Weakness, But Anticipates Sixth Straight Month of Declines

Gold prices rose little on Friday as dollar pressure eased further, but remained poised for a sixth straight month of falls as rising interest rates had a significant impact on the outlook for the yellow metal.

As a result of a series of hawkish U.S. acts and statements, it was anticipated that the price of bullion would decline by around 3 percent in September. Federal Reserve. Earlier this month, the dollar's climb to 20-year highs also placed pressure on gold.

This week, though, the dollar's weakening aided gold's small rebound from two-year lows. As a result of widespread profit-taking, the U.S. dollar fell 0.7% on Thursday and is forecast to lose 1.3% over the course of the week.

Gold prices on the spot market rose 0.1% to $1,662.86 per ounce by 19:30 EST, while gold futures rose 0.2% to $1,671.20 per ounce (23:30 GMT). The price of gold was anticipated to grow by 1.2% this week.

However, the yellow metal remained under pressure as U.S. interest rates continued to rise. The yield on the 10-year Treasury note has maintained at its 12-year high. This year, rising yields have reduced the allure of gold by increasing the opportunity cost of holding the non-yielding asset.

Multiple Fed officials repeated this week their intention to continue rising interest rates, which is expected to keep gold prices subdued for the remainder of the year. As global economic conditions deteriorate, though, gold could regain some of its safe-haven appeal.

Copper prices were headed for their first weekly increase in three weeks as a result of the dollar's depreciation.

Copper futures rose 0.2% to $3.4335 per pound and 2.6% over the past week.

As a result of weak global economic development, the forecast for copper consumption was anticipated to deteriorate significantly in September.

Currently, the market is focused on Chinese manufacturing activity data due later today. It is projected that factory activity in the largest copper importer in the world has fallen for the third consecutive month.