Gold Prices At 3-Month High As US Fed Remarks Weigh On Dollar

Gold prices scaled a three-month peak on Tuesday, as the dollar pulled back after U.S. Federal Reserve officials signalled a slower pace of interest rate hikes..Spot gold was up 0.1% at $1,773.06 per ounce by 1026 GMT, after hitting its highest since Aug. 15 earlier. U.S. gold futures were little changed at $1,777.10.."The metal may resume drawing strength from a weaker dollar and subdued Treasury yields ahead of another busy week for financial markets", especially given how the dollar may be pressured by the speeches from Fed members and U.S. economic data, FXTM analyst Lukman Otunuga said.."A solid rally well above $1,770 could encourage an incline towards the psychological $1,800 resistance level," Otunuga said..The dollar index touched a three-month low, lifting gold's appeal for those holding other currencies. [USD/].While the Fed is expected to keep tightening its pandemic-era fiscal policy, market participants are pricing in an 89% probability of a slowdown in the pace of rate hikes at the central bank's December meeting..Rising interest rates dim non-yielding bullion's appeal..Fed Vice Chair Lael Brainard on Monday echoed comments by Fed Governor Christopher Waller that interest rates needed to keep rising to battle inflation, but potentially at a slower pace.."Gold has had a very strong run from $1,618 per ounce and is now due for some consolidation in the short term. However, the overall dominant risk remains very much to the upside," said Clifford Bennett, chief economist at ACY Securities..Gold prices have risen more than $160 since falling to a more than one-month low earlier this month..Among other precious metals, spot silver retreated from its highest since early June, and was last trading 0.4% lower at $21.84 per ounce..Platinum rose 1% to $1,028.00, and palladium jumped 1.7% to $2,061.00..(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Gold Prices At 3-Month High As US Fed Remarks Weigh On Dollar

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