Gold rebounds from one-week low as dollar slips
Gold rose more than 1% on Thursday , rebounding from a one-week low hit in the previous session as the US dollar eased, while investors assessed the likelihood of a Federal Reserve interest rate increase this month after a hot inflation report. Spot gold was up 1.3% at $4,158.63 per ounce, as of 0257 GMT, after hitting its lowest since October 7 on Wednesday. US gold futures for December delivery…
Gold prices surged more than 1% on Thursday, bouncing back from a one-week low reached the previous day. This recovery followed a heavy drop in the US dollar and increased speculation about a Federal Reserve interest rate hike this month. Investors are closely monitoring data to gauge the likelihood of a rate increase. Spot gold climbed 1.3% to $4,158.63 per ounce, recovering from its lowest level since October 7.
US gold futures for December delivery also rose 1.8% to $4,180.00 per ounce. The weaker dollar makes gold more affordable for international buyers. Analysts note that the market's uncertainty over US interest rate policy is driving the volatility. The Fed is expected to raise short-term rates further, with a 27% chance of a hike this month, up from 22% previously.
Higher interest rates could dampen gold's appeal as an inflation hedge. Other metals also saw gains, with silver up 1.1% and platinum and palladium increasing by 0.3% and 1.3%, respectively.
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