Gold prices rose for a fourth straight session on Thursday as the dollar faltered, although bullion’s outlook remained cloudy as several U.S. Federal Reserve officials said more interest rate hikes were required to rein in inflation.
Gold is sensitive to high interest rates, which increase the opportunity cost of holding zero-yield bullion.
Spot gold was up 0.3% at $1,880.20 per ounce, as of 0747 GMT. U.S. gold futures rose 0.1% to $1,893.20.
“Gold has entered a consolidation phase, which means it is trading in narrow ranges and bouncing between technical levels,” said Matt Simpson, a senior market analyst at City Index.
The dollar index eased 0.2%, making dollar-priced gold a more attractive bet for overseas buyers.
Fed officials said on Wednesday more rate hikes are in the cards as the U.S. central bank pushes to cool inflation, with Fed Governor Christopher Waller saying while wage growth has slowed, the decline is “not enough” and “the Fed will need to keep a tight stance of monetary policy for some time.”
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