Gold is enjoying its third straight day of gains on Friday, and is up some $20 since Tuesday's settlement.
The moves comes after the Federal Reserve remained committed to maintaining an ultralow federal funds rate target in its Wednesday statement, sending the dollar lower on the week, alongside short-term yields.
Higher short-term rates are often seen as the mortal enemy of gold, for a few distinct reasons. First, gold bars throw off no yield (conversely, they are costly to store) so they become an increasingly inferior means of preserving wealth the higher that risk-free rates rise. Second, rising short-term rates are positive for the dollar, as it makes holding the greenback a more attractive proposition. And a stronger currency means that it takes fewer of those dollars to buy the same amount of gold.