Gold holds above week lows as dollar weakens

Gold prices rose in European trade above week lows as the dollar weakens against major rivals, however the metal is still heading for a second weekly loss. 

Prices Today

Gold prices rose 0.5% today to $1,831 an ounce, with a session-low at $1,821, after losing 0.9% on Thursday, the fourth loss in five sessions. 

The Dollar Index

The dollar index fell 0.2% on Friday against a basket of major rivals. 

The losses came as US yields tumble 1.6% today on track to touch a two-week low at 3.007%, undermining the greenback.

Fed Chair Jerome Powell said the Fed is committed to control prices even if that threatened a recession in the country.

Weekly Trading 

Gold is down 0.75% so far this week on track for the second weekly loss in a row, as global central banks move to control runaway inflation and hike rates.

Global central banks are still moving to control inflation and prices, with Bank of England hiking rates by 25 basis points to 1.25%, the fifth such increase in a row.

Swiss Central Bank decided to hike rates by 50 basis points at the June 16 meeting to minus 0.25%, the first such increase since 2007, while analysts expected no change at minus 0.75%.

Higher interest rates weaken demand on gold prices as it becomes less attractive as an investment.

The SPDR 

Gold holdings at the SPDR Gold Trust fell 8.7 tones yesterday, the third decline in a row to a total of 1,063 tones, the lowest since June 6.