Gold prices rise after decline

Gold prices rebounded on January 31 morning after falling 3.5% over three trading days, Report informs referring to the auction data.

The cost of February futures for gold on the New York Comex exchange rose by $1.7, or 0.1%, to $1,786.6 per troy ounce. March silver futures rose 0.03% to $22.308 an ounce.

The decrease in the precious metal was due to the growth of the dollar index after the announcement of the results of the US Federal Reserve meeting.

Thus, the regulator signaled a likely imminent increase in the base interest rate, which is positive for the dollar. However, a stronger dollar makes gold less attractive to buy.

The Wall Street Journal writes that gold looks vulnerable to further losses as it broke through its key level and is trading below $1,800.