NEW YORK: Gold advanced on Monday on a weaker dollar as traders stuck to bets on interest rate cuts before year-end despite comments from Federal Reserve officials, with focus also on the US debt ceiling talks.
Spot gold was up 0.3% at $2,016.19 per ounce by 10:35 a.m. EDT (1435 GMT), rebounding from its May 5 low touched on Friday. US gold futures rose 0.1% to $2,021.10.
The dollar eased from a five-week high, making bullion cheaper for overseas buyers.
“Investors will continue to deploy their capital in gold as the prospect of a rate-cutting cycle continues to firm over the next 12 months,” said Daniel Ghali, commodity strategist at TD Securities.
Most market participants were still betting on at least one rate cut before 2023 ends, according to the CME’s FedWatch tool. Higher interest rates dim appeal for zero-yield gold.
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