Gold prices rose slightly in Asian trade on Friday, but fell from record highs on a pro-dollar Federal Reserve chief warning.
Earlier this week, the yellow metal hit an all-time high on increasing hopes that the central bank will cut interest rates in September. Despite some profit-taking and a decline in prices, gold was relatively undervalued.
Gold futures for expiry in December rose 0.6% to $2,530.70 an ounce, while spot gold rose 0.4% to $2,495.52 an ounce. This week, spot prices saw a modest decline following their record high of $2,531.72
As gold is a safe haven, the prospect of slower growth and lower interest rates is encouraging. Buying gold when prices are low increases the opportunity.
