Gold price show a modest increase

Gold prices rose moderately, aided by the widespread weakening of the US dollar, and reduced likelihood of a Fed hike at the next meeting.

The US Dollar Index, showing the US dollar against a basket of six major currencies, was down 0.23%. Since gold price is tied to the dollar, a weaker dollar makes the precious metal cheaper for holders of foreign currencies.

Mixed comments of members of the Fed's leadership, voiced recently, forced market participants doubt that the Central Bank will raise interest rates in September. This week Leil Brainard, a member of the Fed's Board of Governors, said that the grounds for preventive rate hikes seem less convincing.

"The focus of investors is still directed to the possible time of Fed hikes and dynamics of the market will be completely determined by this expectations", - Said David Gavett of Marex Spectron.

Traders believe that up to the Fed meeting, which will take place on 20-21 September, activity in the gold market will be restrained. "The market does not wait for a rate hike in September - said George Gero, expert at RBC Wealth Management." But as the prospects of rate hikes have not disappeared, gold rising moderately"

From a technical point of view, immediate resistance lies at $ 1330, while the range of $ 1,300- $ 1,310 is an important support.

The cost of the October futures for gold on COMEX rose to $ 1324.5 per ounce.