Gold Rises as Dollar Declines Boost Demand

Gold prices rose on Thursday, supported by a decline in the dollar and a drop in U.S. Treasury yields, as traders awaited U.S. economic data for more clues about the Federal Reserve's monetary policy outlook. Spot gold rose 0.4% to $2036.60 per ounce by 04:42 GMT. U.S. gold futures increased 0.1% to $2048.60. The yield on U.S. 10-year bonds hovered near a five-month low reached on Wednesday after British inflation fell to its lowest level in over two years in November. The dollar dropped 0.1% against its rivals, making gold cheaper for holders of other currencies. Kyle Rodda, a market analyst at Capital.com, stated, "Gold remains supported by the likelihood of a global rate-cutting cycle, particularly in the United States." In addition to gold, other precious metals also saw gains, with spot silver up 0.6% to $24.28 per ounce, platinum rising 0.8% to $965.94, and palladium increasing 0.4% to $1200.73.