Gold holds near 9-month high on hopes of slowing interest rate ‎hikes

Gold prices stabilized after rising to their highest levels in nearly nine months today, Monday, as the weakness of the dollar and expectations of the Federal Reserve (the US central bank) raising interest rates at a slower pace increased the attractiveness of the yellow metal.

According to “Reuters”, the price of gold in spot transactions reached 1918.66 dollars an ounce (an ounce) at 0548 GMT. Earlier in the session, prices reached $1,929 an ounce, the highest level since late April.

US gold futures rose 0.1 percent to $1,923.20

The dollar index fell 0.3 percent, making gold priced in the US currency a more attractive bet.

The US central bank raised interest rates by 75 basis points four times last year, before slowing the pace to 50 basis points in December. Most dealers expect it to raise it by 25 basis points at the next policy meeting, which will be held on January 31 and February 1.

Gold is an asset that does not yield a return, and therefore tends to benefit from low interest rates because it reduces the returns of other assets such as government bonds and the dollar.

Investors will also be watching US retail sales data due on Wednesday

In terms of other precious metals, the spot silver price rose 0.5 percent to $24.37, after reaching its highest level in nearly two weeks. Platinum rose 0.1 percent to $1,065.46, while palladium fell 1.2 percent to $1,767.69.