Gold prices snapped a four-session losing streak and rose on Tuesday, propped up by a weaker dollar as investors waited for clues on the US Federal Reserve’s monetary policy path.
Spot gold was up 0.5% at $1,746.52 an ounce as of 10:01 GMT. Gold futures in the United States were up 0.5% at $1,748.90.
The dollar, which rose sharply the day before on investor concerns over China’s COVID outbreaks, fell, making gold less expensive for foreign buyers.
Investors are now awaiting the latest Fed minutes to be released on Wednesday, and market participants widely expect a 50 basis point hike at the December meeting, with a rate peak expected in June.
Interest rate hikes to fight rising inflation tend to increase the opportunity cost of holding gold, which doesn’t earn interest.
Cleveland Fed President Loretta Mester said Monday that the Federal Reserve may ease interest rate hikes starting next month.
Among other precious metals, spot silver was up 1.5% at $21.15 an ounce, platinum added 1.2% to $993.97 and palladium was up 1.3% at $1,889.02.
With information from Reuters