Weaker Dollar Sends Gold Prices Soaring Amid Fed Rate Hold

Gold prices rose on Friday and were poised for a weekly gain as a weaker US dollar made greenback-priced bullion more affordable for buyers overseas.

The spot gold price was up 0.7% at $4,379.95 per ounce by 1:40 p.m. EDT (1740 GMT), while US gold futures settled 0.4% higher at $4,437.30.

Analyst Jim Wyckoff attributed the rise to a lower US dollar index, which slipped 0.3%, and in-line US inflation readings this week that tipped the scales in favor of an interest rate hold by the Federal Reserve next month.

The Fed's decision to keep interest rates steady at 3.50% to 3.75% has been priced into markets, with a 33% chance of a rate hike in September versus 55% last week, according to CME's FedWatch Tool.