Gold rose over 1 per cent, buoyed by a weaker dollar and bargain hunting, but was on track for a fourth straight weekly decline as surging energy prices fuelled inflation concerns and raised expectations of higher global interest rates, reports Reuters.
Spot gold rose 1.3pc to $4,433.69 per ounce as of 0427 GMT. The commodity has fallen about 1.2pc so far this week.
US gold futures for April delivery gained 1.2pc to $4,428.40.
The dollar eased, making greenback-priced bullion cheaper for holders of other currencies.
“For weeks, gold has been treated as a liquidity asset sold to cover volatility and margin calls elsewhere, but at current levels, it is now looking more like a value proposition for investors, which is why it’s back in favour today,” said Tim Waterer, chief market analyst, KCM Trade.
“However, hawkish central banks wary of persistent oil-driven inflation, continue to act as a heavy lid on gold’s ambitions to the upside, keeping any rally firmly in check.”
