FX.co ★ Gold Rises Amidst The Dollar's Weakness

Prices of the yellow metal made mild recovery on Thursday amidst a retreat in the Dollar.

The Dollar Index (DXY), a measure of the Dollar's relative strength against a basket of six currencies dropped 0.16 percent overnight to record 103.76. The day's range was between 103.53 and 103.89. The Dollar's weakness supported the rally in the prices of the yellow metal.

The DXY had touched a high of 104.11 on Wednesday amidst rate hike fears triggered by the retail sales jump.

Gains were limited by fears of how the Fed would deal with the recent drop in inflation as well as the strong signals from the labor market. The strong jobs data as well as the retail sales data is seen providing the Fed with more headroom to raise rates and keep it restrictive enough to rein in inflation.

Gold Futures for April Settlement gained 0.21 percent to trade at $1,849.15. The day's trading range has been between $1,843.55 and $1,854.15.

Spot Gold also rose 0.20 percent to trade at $1,839.61 per troy ounce. The day's trading range has been between $1,834.37 and $1,844.86.