Gold prices rose on Thursday, within recovery from the 7-week low hit yesterday, while on track for the second straight monthly loss due to strong chances of the near tightening of the US monetary policy.

Gold prices rose 0.5% to $1,734.87 an ounce, after opening at $1,725.76, and hit a high of $1,725.53.

Gold closed lower by 0.5% yesterday, and hit 7-week low at $1,721.63 an ounce, after the US dollar rose.

Gold prices fell 4.3% this month, to get on track for the second straight monthly loss, as investors focused on the US dollar after the US Federal Reserve's meeting raised the chances of the near tightening of the US monetary policy.

The Federal Reserve voted during its September 21/22 meeting to keep the interest rate unchanged, but hinted at reducing the bond-buying program soon.

Fed Chairman Jerome Powell said if the US economy continues to recover, the Fed may announce the date of reducing bond-buying next November.

The Federal Reserve projected to raise interest rates 3 times in 2023 and 3 more times in 2024, to reach 1.8% by the end of 2024.

The Federal Reserve is starting to cut monthly bonds purchases next November, leading to estimates of possible early rate hikes next year.  

San Francisco's Federal Reserve Governor, Mary Daly, said the Fed will be able to cut down on bonds purchases by the end of the year, but rate cuts are still far away.

Philadelphia Federal Reserve President Patrick Harker said it''ll be time soon to start cutting down on monetary easing.

All these remarks bolstered the case for policy tightening in the US by next November.

Additionally, the strong prospects of the near tightening of the US monetary lifted the 10-year US Treasury bond yield yesterday to a 3-month high at 1.56%.

Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at the lowest level since April 8, 2020 of 990.03 metric tonnes.

Euro gained ground in European trade against dollar away from 14-month lows, holding around 1.16 and on track for the second monthly loss in a row on concerns of divergent EU-US monetary policies. 

EUR/USD rose 0.1% to 1.1609, after closing down 0.75%, the fourth loss in a row, and the largest since June 16, marking 14-month lows at 1.1589.

San Francisco's Federal Reserve Governor, Mary Daly, said the Fed will be able to cut down on bonds purchases by the end of the year, but rate cuts are still far away.

Philadelphia Federal Reserve President Patrick Harker said it''ll be time soon to start cutting down on monetary easing.

All these remarks bolstered the case for policy tightening in the US by next November.

Euro otherwise was down 1.7% so far this September against dollar, on track for the second monthly loss in a row on concerns of divergent US-EU monetary policies. 

The European Central Bank asserted in its last meeting its emphasis on supporting growth in the euro zone and maintaining the current emergency pandemic monetary easing program until March 2022.

ECB President Christine Lagarde said the bank will continue to view the current rise in inflation rates as merely transient. 

Most of US stock indices closed higher except for Nasdaq on Wednesday, amid focus on the US Treasury bond yield and its impact on the stock market.

US Treasury Secretary Janet Yellen warned of catastrophic consequences if Congress failed to raise or suspend the statutory debt limit in less than three weeks, adding that this is evident in the Treasury's limited resources that are near running out.

Federal Reserve Chairman Jerome Powell said the US economy is still far from achieving maximum employment, a key component of the central bank's requirements for raising interest rates.

To the oil market, WTI crude October futures fell 0.6% or 46 cents, and closed at $74.83 a barrel.

Brent November futures fell 0.6% or 45 cents, and crude closed at $78.64 a barrel.

As for stocks, Dow Jones rose 0.3% or 90 points, and closed at 34,390, with a day high of 34,580, and a low of 34,305.

S&P 500 rose 0.1% or 7 points to 4,359, after hitting a high of 4,385 and a low of 4,355 points.

Nasdaq fell 0.2% or 34 points to 14,512, with a high of 14,676 and a low of 14,493.

Silver prices slumped on Wednesday, as the US dollar rallied against most currencies.

Federal Reserve Chairman Jerome Powell said the US economy is still far from achieving maximum employment, a key component of the central bank's requirements for raising interest rates.

US Treasury Secretary Janet Yellen warned of catastrophic consequences if Congress failed to raise or suspend the statutory debt limit in less than three weeks, adding that this is evident in the Treasury's limited resources that are near running out.

The dollar index rose against a basket of major currencies by 0.6% to 94.3 points as of 19:49 GMT, after hitting a high of 94.3 points and a low of 93.6 points.

Silver spot prices fell 4.3% to $21.5 an ounce as of 19:49 GMT, with a day high at $22.5, and a low at $21.4.