(Bloomberg) -- Gold rose to the highest in almost a month as the dollar weakened and investors awaited the U.S. Federal Reserve's interest-rate decision on Wednesday. Shares of gold-mining companies also advanced.
Bullion gained a fourth day, the longest run in a month, as the Bloomberg Spot Dollar Index extended its retreat from a seven-month high. Gold's recent gains pared a loss in October as the Federal Bureau of Investigation reopened an inquiry into Hillary Clinton's use of private e-mail, adding more uncertainty to the U.S. presidential race. A jump in exchange-traded funds backed by the metal also helped support prices.
Gold slipped in two of the past three months amid mounting expectations that the Fed will raise interest rates soon, curbing demand for assets that don't provide a yield. While the market doesn't expect policy makers to increase rates after their meeting Wednesday, the odds of a move by year-end climbed to 70 percent from 59 percent a month ago.
The metal is rising on “election jitters, dollar moves and good inflow to gold ETF products recently,” George Gero, a managing director at RBC Wealth Management, said in an e-mail. Demand during India's Diwali festival has also helped stoke the rally, he said.
Gold for immediate delivery gained 0.9 percent to $1,289.18 an ounce at 2:03 p.m. in New York, after reaching $1,290.92, the highest since Oct. 4, according to Bloomberg generic pricing. The metal fell 2.9 percent last month. On the Comex in New York, futures for December delivery gained 1.2 percent to settle at $1,288 an ounce.
Investors boosted their holdings in gold ETFs for a sixth straight month in October, the longest streak since 2009. Holdings rose 0.7 metric ton to 2,041 tons on Monday, taking total gains in October to 8.7 tons.
In other precious metals news:
- Silver, platinum and palladium also advanced.
- A gauge of 16 senior global gold producers gained as much as 3.4 percent, led by Gold Fields Ltd. and Harmony Gold Mining Co.
--With assistance from Jasmine Ng To contact the reporters on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net, Luzi Ann Javier in New York at ljavier@bloomberg.net. To contact the editors responsible for this story: James Attwood at jattwood3@bloomberg.net, Joe Richter
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