Gold prices rose to their highest level in six months on Monday, supported by a weaker dollar and bets that the Federal Reserve has concluded its interest rate hike cycle, while attention shifts to upcoming U.S. inflation data set to be released later this week. Spot gold increased by 0.4% to $2010.87 per ounce by 06:08 GMT, after reaching its highest level since May 16. U.S. gold futures also rose by 0.4% to $2011.90. Kyle Roda, a market analyst at Capital.com, stated, "What is currently driving gold is the decline of the dollar due to the weak data recently released." He added, "The economic data that will be released from the U.S. this week, whether about growth or inflation, will strengthen or weaken forecasts about whether gold will remain above $2000."
The Dollar Index fell by 0.1%, remaining close to a two-month low it hit last week, making gold less expensive for holders of other currencies. Market focus is now turning to the revised U.S. GDP data for the third quarter set to be released on Wednesday, and the U.S. Personal Consumption Expenditures Price Index, the Federal Reserve's preferred inflation measure, expected on Thursday. Recent data indicating signs of slowing inflation in the U.S. has bolstered expectations that the Fed may begin easing its tightening monetary policy sooner than expected.
As for other precious metals, silver in spot transactions rose by 1.5% to $24.67 per ounce, platinum remained stable at $930.51, and palladium increased by 0.2% to $1070.76.
