NEW YORK: Gold prices rose to a near one-week high on Thursday on a weaker dollar, after minutes from the US Federal Reserve’s November meeting signalled it may soon slow the pace of interest rate hikes.
Spot gold rose 0.4% to $1,756.66 per ounce by 11:08 a.m. ET (1608 GMT). US gold futures advanced 0.7% to $1,756.90.
The minutes of the Fed’s Nov. 1-2 policy meeting released on Wednesday showed a “substantial majority” of Fed policymakers agreed it would “likely soon be appropriate” to slow the pace of interest rate hikes.
The dollar index extended losses after sliding 1% overnight, making bullion less expensive for overseas buyers.
“Investor expectations are moving on a dovish path for the Federal Reserve,” Carlo Alberto De Casa, external analyst for Kinesis Money, said, adding a weaker US dollar was also a positive catalyst for bullion.
High interest rates have kept a leash on gold’s traditional status as a hedge against inflation and other uncertainties this year, as they translate into a higher opportunity cost to hold the non-yielding asset.