Gold prices hit six-month highs on a weak US dollar


US gold futures also rose 0.6 percent to $2,015.00 (representative)

Washington:

Gold prices hit their highest level in more than six months on Monday, strengthening above $2,000 per ounce. ounce level as a weaker dollar and expectations of an end to US interest rate hikes lifted demand.

Spot gold rose 0.6 percent to $2,013.99 an ounce by 1311 GMT, after hitting its highest since May 16. U.S. gold futures also rose 0.6 percent to $2,015.00.

The dollar fell 0.2 percent against a basket of major currencies, hovering around a more than two-month low touched last week, making gold cheaper for holders of other currencies [USD/]

“Gold is flying, and to really explain it, the fact that it has finally broken above $2,000 in a significant way,” said Craig Erlam, senior market analyst at OANDA, describing the move as “purely technical” and driven by last week’s U.S. inflation. data and job report.

Gold prices are well above their 50-, 100- and 200-day moving averages and are about $60 away from the August 2020 record high of $2,072.49.

Investors’ attention is on the release of revised US third-quarter GDP figures on Wednesday and the PCE price index, the Fed’s preferred inflation gauge, on Thursday.

“Economic numbers coming out of the US this week, both on the growth and inflation fronts, will make or break an argument for whether gold stays above $2,000,” said Kyle Rodda, financial market analyst at Capital.com.

Recent data indicating a slowdown in US inflation has raised expectations of an earlier-than-expected easing of monetary conditions by the Federal Reserve.

Traders widely expect the Fed to keep rates on hold in December, while pricing in about a 60 percent chance of a cut next May, CME’s FedWatch Tool shows.

Lower interest rates reduce the opportunity cost of holding non-interest-bearing assets, often boosting gold prices.

Silver rose 1.7 percent to $24.71 an ounce, platinum fell 0.3 percent to $927.64 and palladium rose 0.8 percent to $1,077.56 an ounce.

(With the exception of the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)


Leave a Reply

Your email address will not be published. Required fields are marked *