Gold rises as dollar rises after Fed officials' statements

Gold prices rose on Thursday, to head for the second straight daily gain, as the US dollar's rally paused following Fed officials' remarks about the US inflation expectations and the future of US interest rates. 

Gold prices rose 0.3% to $1,783.39 an ounce, after opening at $1,778.52, and hit a low of $1,772.84.

Gold closed higher by 0.1% yesterday, within recovery attempts from a 2-month low of $1,760.80.

The dollar index fell 0.1% today, on profit-taking from a 2-month high of 92.40 points.

The US dollar also fell fell following conflicting statements by some Fed officials about inflation expectations and the future of the US interest rates.

Federal Reserve Chief Jerome Powell hinted in his testimony before the US Congress today that the Fed will adopt a patient approach and stick to its monetary policy for a while before raising interest rates.

Fed members Raphael Bostic and Michael Bowman said Wednesday that this period of high inflation may last longer than anticipated

Gold stocks at the SPDR ETF rose 2.91 metric tonnes on Friday, with the total at 1,046.65 metric tonnes.