NEW YORK: Gold rose over 1 percent on Tuesday to a more than one-month high, bolstered by a softer dollar and lower Treasury yields, with investors betting that recent US economic readings make the case for a pause in the Federal Reserve’s interest rate hikes.
Spot gold was up 1.3% at $1,979.19 per ounce by 12:41 p.m. ET (1641 GMT), after hitting the highest since late May. US gold futures advanced 1.5% to $1,985.20.
The dollar index wobbled near more than a one-year low, making bullion more affordable to buyers holding other currencies. Benchmark Treasury yields ticked lower for the second straight day.
“Gold can certainly move towards $2,000 if incoming data suggests the Fed will back off after one more hike this month,” said Jim Wyckoff, senior market analyst at Kitco.
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