Gold rose for a fourth consecutive session on Tuesday and hit a more than six-month high, driven by a retreating dollar and expectations that the U.S. Federal Reserve has finished hiking interest rates.
Spot gold gained 1.4% at $2,041.55 per ounce, highest since May 10 2023.
U.S. gold futures for December delivery settled 1.4% higher at $2,040.
The near-term outlook for gold remains bullish, with the dollar index in a downtrend on hopes the Fed will no longer raise interest rates and will maybe even cut them by springtime, said Jim Wyckoff, senior analyst at Kitco Metals.
However, “if (U.S.) GDP numbers and inflation indicators are stronger than expected, it will dent traders’ enthusiasm in bullion,” Wyckoff added.
Fed policymakers look increasingly comfortable closing out the year with interest rates on hold and waiting before cutting them. Lower rates reduce the opportunity cost of holding non-interest-bearing bullion.
Fed Governor Christopher Waller said he is “increasingly confident” that policy is in the right spot.
Making bullion less expensive for overseas buyers, the dollar index touched its lowest since mid-August.
SOURCE KITO NEWS
PUBLISHED BY GOLDCeylon