Gold price rises again due to weak dollar

Gold rose on Wednesday, as news that an oil tanker was hit by a shell off the coast of Oman also boosted the metal’s safe-haven appeal.

Spot gold was up 0.3% at $1,783.59 an ounce as of 10:08 GMT, while US gold futures were up 0.6% at $1,786.90.

The US Navy’s Fifth Fleet said it was aware of an incident in the Gulf of Oman involving a commercial vessel.

The dollar was down 0.4%, making gold cheaper for buyers of other currencies.

The bullion hit its highest level since Aug. 15 on Tuesday after news broke that a Russian missile killed two people in Poland. It gave up some gains after US President Joe Biden said the weapon might not have been fired from Russia.

Data on Tuesday showed that US producer prices rose less than expected in October, raising hopes that the US Federal Reserve could slow down rate hikes in the future.

Although gold is considered a safe investment in times of political and financial uncertainty, rising interest rates reduce the attractiveness of bullion, which does not earn interest.

Among other precious metals, spot silver was up 2.1% at $21.9909 an ounce, platinum was up 0.6% at $1,020.79, while palladium was little changed at $2,097.21.

With information from Reuters