Gold prices rise more than 1% in a day globally

Gold prices rose by more than 1% in the global market on Friday, recovering from recent losses. Prices remained lower at the beginning of the trading session but turned higher toward the end of the day.

According to a Reuters report, spot gold prices rose 1.1% to $4,363.01 per ounce. However, the precious metal remained down about 1.5% for the week.

Independent metals trader Tai Wong said expectations of a Federal Reserve interest rate hike next week strengthened following the release of US consumer price index (CPI) data. The market had already been pricing in about a 70% chance of a rate hike.

Wong said the price movement following the recent decline suggests that gold may be establishing a short-term base at its current level.

Meanwhile, US gold futures were almost unchanged on Friday, ending the day at $4,408.90 per ounce.

US inflation data and the Federal Reserve’s potential interest rate decision have become key factors for the gold market. Typically, higher interest rates reduce the appeal of gold because it does not generate interest. However, following the recent decline, gold prices have shown signs of a recovery.