Gold prices jump to highest level in a week supported by weaker dollar

Gold prices hit a one-week high, benefiting from the decline in the US dollar, while markets await statements from Federal Reserve officials for clues on the future of interest rates.

The dollar witnessed a decline due to profit-taking operations after the strong gains it achieved last week, which contributed to enhancing the appeal of gold for buyers using other currencies.

Kyle Rodda, financial markets analyst at Capital.com, sees the recent movements in the market as technical in nature due to the dollar reaching a buying peak.

Strong economic data has raised concerns about whether the Federal Reserve will continue to cut interest rates after reducing them by 75 basis points since September.

The central bank officials are expected to make several statements this week, which may affect expectations for the upcoming December meeting.

Traders currently see a 58.8% chance of a 25 basis point rate cut in December, compared to a 41.2% chance of keeping it unchanged.