Gold prices rose during Friday's trading session, heading for the first weekly gain four weeks, recovering from losses recorded in the previous session, following the Fed’s decision to cut interest rates by a quarter of a percentage point.
As of 08:42 GMT, gold spot prices hovered around $1,504.72 an ounce, where the precious metal opened today's session near $1,499.69 an ounce.
This week, the Fed decided to cut interest rates, in a move that met expectations, by 25 basis points to a range of 1.75 percent to 2.00 percent.
However, the gains were limited as the Fed Chair Jerome Powell’s comments seemed to be hawkish, as he hailed the progress in economic growth and labor market, thereby lowering the chances of seeing more rate cuts before the end of the year.
The Fed meeting showed divergent views among members, with some supporting a 50 basis point interest rate cut, amid calls by some for a rate fix.
U.S. President Donald Trump said Fed Chairman Jerome Powell's job was safe, although he was "unhappy" with the central bank after he moved to cut interest rates by a quarter of a percentage point on Wednesday.
The dollar index, which tracks the performance of the U.S. currency against a basket of six major currencies, recovered some of its losses as it witnessed a 0.06 percent increase at 97.90.
Global market tensions
The world's two largest economies trade negotiators resumed their trade talks for the first time in nearly two months on Thursday, as U.S. and Chinese sides try to narrow the deep political differences to find a way out of their long trade war.
Meanwhile in United Kingdom, Brexit fears receded somewhat yesterday after European Commission President Jean-Claude Juncker said he believed an agreement could be reached before the deadline.
"I think we can get a deal," Juncker said, "I am doing
everything I can to reach an agreement, because I don't like the idea of going
out without an agreement, because that has catastrophic consequences, it will
last for years.”