Melbourne: Gold prices in Asia rose as the dollar weakened against leading currencies, and some investors deemed the metal to be cheap after eight consecutive days of declines.
Silver also climbed. The gold rose $8 an ounce, or 1.4 per cent, to $567.75. The metal, which had declined 12 per cent in the last eight days, opened weak at 554.25 at the opening.
Silver also rose 27 cents, or 2.8 per cent, to $9.9 an ounce.
The dollar fell against the euro, making gold more attractive as an alternative investment.
The 14-day relative strength index, which attempts to identify possible turning points in price trends, fell below 30 on Thursday for a third day. A reading below 30 indicates prices are poised to rise.
In India, the world's biggest gold consumer, gold prices for August delivery rose Rs.122, or 1.45 percent, to Rs 8,556 per 10 grams, or Rs.26, 609 ($579 per ounce) on the Multi Commodity Exchange of India.
Gold posted its steepest one-day decline in 23 years on June 13 on concern the US Fed might keep raising rates to contain inflation, reducing the precious metal's appeal as an investment.
Higher rates boost the dollar's appeal and the return on assets such as bonds, and increase costs for investors borrowing funds to buy gold.
The metal has fallen 23 percent since touching a 26-year high of $730.40 on May 12. Other metals like silver, zinc, and copper also dropped last month on concern of higher interest rates plummeting the global economic growth.
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