NEW YORK: Gold prices rose to a two-week high on Wednesday as the dollar and US bond yields slipped on expectations the Federal Reserve will temper its aggressive rate-hike stance starting December.
Spot gold rose 0.9% to $1,667.64 per ounce by 12:30 p.m. ET (1630 GMT), after touching its highest since Oct. 13.
US gold futures rose 0.8% to $1,671.90.
“Over the course of the last couple sessions, we’ve seen yields drop, the dollar come down and as a result, we’ve seen a renewed bid in the gold market, said David Meger, director of metals trading at High Ridge Futures.
The dollar extended losses to a more than one-month low against its rivals, making gold less expensive for other currency holders. Benchmark US 10-year Treasury yields dropped to a one-week low.
Data on Tuesday showed that US consumer confidence ebbed in October, home prices fell sharply in August and there were signs that the Fed’s aggressive stance was starting to cool the labour market.
“We might see a slowing of the economy, but inflation may not come down as much as the Fed would like and yet they will be no longer able or willing to raise rates further and that is a very positive environment for gold,” Meger said.
Spot silver rose 1.1% to $19.56 per ounce, platinum jumped 4.4% to $955.53 and palladium rose 2.3% to $1,966.61.
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