Gold hits 6-month high as dollar declines

Gold prices rose to their highest level in six months on Monday, supported by a weak dollar and bets that the Federal Reserve (the US central bank) has finished its cycle of increasing interest rates, while the focus turned to US inflation data scheduled for release later this month. The week…

According to Reuters, gold in spot transactions increased 0.4 percent to $2,010.87 per ounce by 0608 GMT, after reaching its highest level since May 16. US gold futures also rose 0.4% to $2,011.90.

“What is currently moving gold is the decline in the dollar due to the weak data that was issued recently,” said Kyle Rodda, a financial markets analyst at Capital.com.

He added, “The economic data that will be issued from the United States this week, whether about growth or inflation, will strengthen or weaken speculation about whether gold will remain above $2,000.”

The dollar index fell 0.1%, remaining not far from the lowest level in more than two months that it touched last week, which makes gold less expensive for holders of other currencies.

The market’s focus now turns to revised US third-quarter GDP data due on Wednesday and the US Personal Consumption Expenditures Price Index, the Federal Reserve’s preferred measure of inflation, due on Thursday.

The latest data, which showed signs of slowing inflation in the United States, reinforced expectations that the Federal Reserve may begin to ease monetary tightening policy sooner than expected.

As for other precious metals, silver increased in spot transactions by 1.5% to $24.67 per ounce, and platinum stabilized at $930.51. Palladium rose 0.2% to $1,070.76.