Gold futures rose on Thursday after hitting a six-week high as the dollar rebounded as investors continued to slump in precious metals amid speculation that the Federal Reserve may keep interest rates down for longer than originally expected.
Gold futures for August delivery on the Comex Exchange rose by $9.70, or 0.77%, to $1,258.98.82 a troy ounce.
Spot gold had climbed 0.2 per cent to $1,262.78 per ounce. It reached $1,264.90 an ounce earlier in the session, its highest since June 15.
Despite the strengthening of the US dollar, gold futures continued to advance, adding to gains from the previous session as investors expected the Federal Reserve to keep interest rates low for a long time following the central bank’s decision unchanged.
As it expected on a large scale, to stop the Federal Reserve on interest rates on Wednesday, while maintaining the benchmark rate in a target range of 1% -1.25% while expressed concerns about slowing inflation, pushing the dollar to its lowest level in fourteen months.
The fall in the dollar is a blessing for gold denominated in dollars, since it makes buying the metal less expensive for investors who pay in other currencies.
With the Fed now probably waiting at least until the end of the year and yields on US bonds. Falling, there are some tail-forming winds that should drive higher prices in the short term.
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