WASHINGTON (dpa-AFX) - Gold prices rose sharply on Friday and headed for the first weekly gain in four, after having tested the $1,700 level earlier this week.
Spot gold climbed 1.1 percent to $1,728.03 per ounce, while U.S. gold futures were up 1.1 percent at $1,738.95.
A weaker dollar helped lift prices as investors absorb hawkish messages from Fed Chair Jerome Powell and ECB chief Christine Lagarde.
After Powell delivered an uncharacteristically strong message about how the Fed plans to combat entrenched inflation, U.S. interest rate are now almost certain to go up by 75 bps at the September 20-21 Fed meeting.
The euro was slightly higher against the dollar after the European Central Bank (ECB) raised interest rates by a record 75 basis points and signaled further hikes to tame runaway inflation.
The ECB must raise interest rates further to prevent record euro-zone inflation from spilling over into wages, Governing Council member Klaas Knot said.
Separately, Slovakia's Peter Kazimir called for 'resolute hikes' to tackle 'painfully' high inflation.
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