Gold prices rose, but headed for their largest weekly decline in 3 and a half months, as hopes that negotiations would reach a solution to the US government debt ceiling crisis and fading expectations of cutting interest rates by the end of the year led to a decline in gold.
And gold increased in spot transactions 0.3% to $ 1963.39 an ounce, but it headed towards a weekly decline of 2.4%, the largest since early February.
Gold futures rose 0.2% to $1,964.60.
Ilya Spivak, head of the global macroeconomics unit at Testlife, said that the markets expect a positive end to the US government debt ceiling talks, as the new statements speak of progress, and with Treasury yields and the dollar rising at the same time, gold is declining.
The dollar index fell slightly on the day, but hovered near a two-month high, making gold more expensive for foreign investors.
Two Fed policymakers said that US inflation did not appear to be declining fast enough to allow the US central bank to suspend interest rate hikes.
Fed Chairman Jerome Powell is scheduled to speak at an event later in the day, and traders will be looking for any clues to the path of monetary policy.
As for other precious metals, the spot silver price rose 0.6% to $23.64 an ounce, platinum rose 0.3% to $1052.43, and palladium increased 1.5% to $1474.63.
