has decreased Gold priceToday on Friday, the yellow metal’s appeal has weakened due to a stronger dollar and fears that key central banks will raise interest rates sharply to curb inflationary pressures.

According to “Reuters”, gold fell 0.2% to $1714.72 an ounce in spot transactions.

Prices closed up 1.3% at their lowest level in more than a year at $1680.25 on Thursday.

Gold is up nearly 0.5%, heading for its first weekly gain in six weeks.

And US gold futures were up 0.1% at $1714.90 an ounce.

The dollar rose 0.2% against its peers, making the price of gold higher in the US currency for buyers of other currencies.

“Gold is falling and the rallies that have started will be short-lived as gold is under pressure as inflation expectations decline,” said Edward Meier, analyst at ED&F Capital Markets.

The European Central Bank joined its global peers in the fight against rising inflation by raising interest rates more than expected on Thursday, even as the euro zone economy was hurt by the impact of Russia’s war on Ukraine.

The Federal Reserve’s policy meeting is scheduled for next week.

Policymakers are expected to raise interest rates by 75 basis points.

“If they still think inflation is a problem or keep raising interest rates, that will have a very negative impact on gold, and we’re waiting to hear how tight they will guide interest rates,” Meir said.

Higher interest rates increase the opportunity cost of owning the precious metal, which does not generate income.

As for other precious metals, silver fell 0.3% to $18.78 an ounce in spot transactions, platinum rose 0.3% to $873.92 and palladium rose 0.2% to $1895.86.