BENGALURU: Gold prices hit a more than six-month high on Monday, firming above the $2,000 per ounce level, as a weaker dollar and expectations of an end to US interest rate hikes lifted demand.
Spot gold was up 0.6% at $2,013.99 per ounce by 1311 GMT, after reaching its highest since May 16. US gold futures also rose 0.6% to $2,015.00.
The dollar eased 0.2% against a basket of major currencies, hovering around a more than two-month low touched last week and making gold less expensive for holders of other currencies “Gold is flying and to really explain it, is the fact that it’s finally broken above $2,000 in a significant way,” said Craig Erlam, senior markets analyst at OANDA, describing the move as “purely technical” and driven by last week’s US inflation data and jobs report.
Gold prices are well above their 50-, 100- and-200 day moving averages and are around $60 away from August 2020’s all-time 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 figures coming out of the US this week, both on the growth and inflation front, will make or break a case for whether gold remains above $2,000,” said Kyle Rodda, a financial market analyst at Capital.com.
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