Gold futures remained higher than Monday, as the dollar closed near a two-month low in the previous session on concerns about lower levels of inflation in the United States and the possible consequences of the Federal Reserve’s interest rate policy continued to weigh heavily on the dollar.
Comex gold futures were up $7.05 or about 0.55% at $1,294.29 a troy ounce.
Spot gold had risen 0.2 per cent to $1,290 an ounce.
MCX Gold futures were trading 0.32 per cent, or Rs 95, up at Rs 29,475 per 10 gram.
The sentiment on the dollar remained weak after Wednesday’s record from the Fed meeting in November showed that some officials were concerned that inflation would remain below the bank’s 2% target for a longer period than expected.
The record echoed remarks by Federal Reserve Chairman Janet Yellen earlier this week that it was not sure about inflation expectations.
While the high interest rate in December is still almost the price almost, expectations, investors declined to further raise interest rates in 2018.
The dollar index, which tracks the US currency against a basket of six major currencies, at 92.783 and shaved near the lowest level in two months at 92.675 on Friday.
Bullion traders also continued to focus on a possible US tax reform plan. President Donald Trump is scheduled to meet with Senate Republicans on Tuesday to discuss the party’s efforts to introduce legislation on tax reform.
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