Gold extends gains to hit 8-month peak

Gold prices continued their gains and rose to an eight-month peak today, Monday, supported by the decline in the dollar, which makes the precious metal priced in it more attractive to buyers abroad, while investors are betting that the Federal Reserve (the US central bank) will take a less severe path to raise interest this year.

According to Reuters, gold in spot contracts rose 0.7 percent to $1878.06 an ounce at 0557 GMT, its highest level since May 9. And gold futures contracts in the United States increased 0.7 percent to $ 1881.90.

Meanwhile, the dollar index fell 0.3 percent.

High interest rates reduce the attractiveness of gold, which is considered a hedge against inflation, and increase the opportunity cost of owning gold because it does not yield a return.

Silver in spot contracts increased 1 percent to 24.04 dollars, palladium rose 1 percent to 1822.62 dollars, while platinum fell 0.2 percent to 1088.38 dollars.