Gold prices climbed more than 1% on Thursday, recovering from a one-week low reached the previous day. The rebound came as the US dollar weakened, while investors weighed the possibility of a Federal Reserve interest rate hike following a recent surge in inflation.
Spot gold rose by 1.3% to $4,158.63 per ounce by 0257 GMT, after hitting its lowest point since October 7 on Wednesday. Meanwhile, US gold futures for December delivery gained 1.8%, reaching $4,180.00 per ounce.
The shift in gold prices reflected broader market reactions to economic data and policy expectations. The US dollar's easing contributed to gold's rebound, as a weaker dollar often makes gold more attractive to investors holding other currencies.