Gold prices climbed a six-month peak on Monday, supported by a weaker U.S. dollar and on bets that the Federal Reserve is done with its interest rate hike cycle, while the focus shifted to U.S. inflation data due later this week.
Spot gold was up 0.5% at $2,010.99 per ounce by 0758 GMT, after hitting its highest since May 16. U.S. gold futures rose 0.4% to $2,011.70.
"What's moving gold at the moment is the lower U.S. dollar because of the recent soft data," said Kyle Rodda, a financial market analyst at Capital.com.
"Economic figures coming out of the U.S. this week, both on the growth and inflation front, will make or break a case for whether gold remains above $2,000," Rodda added.
The dollar index (.DXY) edged down 0.1% against its rivals, not far from a more than two-month low level touched last week, making gold less expensive for other currency holders.
Market focus now shifts to the revised U.S. third-quarter GDP figures due on Wednesday and the U.S. PCE price index - Fed's preferred inflation gauge - on Thursday.
Recent data showing signs of slowing inflation in the U.S. has boosted expectations that the Fed could begin easing monetary conditions sooner than expected.
Traders widely expect the Fed to leave rates unchanged in December, while pricing in about a 60% chance of a rate cut in May next year, according to CME's FedWatch Tool.
Lower interest rates diminish the opportunity cost of holding non-interest-bearing gold.
Spot gold may extend gains into a range of $2,026 to $2,032 per ounce, as it has pierced above a resistance at $1,999, according to Reuters technical analyst Wang Tao.
Spot silver gained 1.4% to $24.65 per ounce, platinum rose 0.2% to $932.81. Palladium rose 0.6% to $1,075.01 per ounce.
Source Reuters
BDST: 1513 HRS, NOV 27, 2023
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