Increase in Gold Prices

Gold prices rose today, Thursday, as the dollar weakened, while attention focuses on the upcoming important inflation data in the United States for indications on the Federal Reserve's (central bank) interest rate decisions. Gold in spot transactions increased by 0.7 percent to $2314.22 an ounce by 11:27 GMT, after dropping yesterday to its lowest level since June 10. U.S. gold futures rose by 0.5 percent to $2324.60. The dollar index fell by 0.2 percent after hitting its highest level in nearly two months in the previous session. The decline in the dollar enhances gold's appeal to holders of other currencies. A decrease in interest rates reduces the opportunity cost of holding gold, which does not yield returns. Regarding other precious metals, silver increased by 0.4 percent in spot transactions to $28.87, while platinum decreased by 0.3 percent to $1008.10, and palladium fell by 1.3 percent to $916.83.