Gold prices rose today, supported by falling dollar and US bond yields, as investors expect the pace of interest rate hikes by the Federal Reserve (the Emir’s central bank) to slow at its meeting of next week’s monetary policy, according to Reuters.
And gold in instant transactions rose 0.7% to $1783.98 an ounce. US gold futures rose 0.5% to $1,790.60.
The dollar fell 0.4% against its rivals, making bullion cheaper for overseas buyers. Ten-year benchmark US Treasury yields fell to their lowest level in three months.
Market participants widely expect the Federal Reserve to raise interest rates by 50 basis points at its last meeting of 2022, scheduled for December 13-14.
Raising interest rates to fight inflation is often intended to increase the opportunity cost of owning interest-free gold.
November CPI data for the month of the United States is also awaited and should be released next week.
But uncertainty surrounds the future of gold due to strong US economic data recently, which has led to fears that the Federal Reserve may raise interest rates more than recently expected.
Elsewhere, silver was up 2.1% in spot transactions to $22.62 an ounce.
Platinum rose 2.3% to $1,011.65 an ounce and palladium rose 0.7% to $1,862.25.
