BENGALURU: Gold inched higher on Monday as comments by US Federal Reserve officials on the economy raised uncertainty about how much more US interest rates would rise, weighing on the dollar.
Spot gold was up 0.1 per cent at $1,222.06 per ounce, as of 1115 GMT, having hit a one-week high of $1,225.29 in the previous session.
US gold futures were flat at $1,222.60 per ounce.
The dollar steadied after posting its biggest weekly drop in two months last week as Fed policymakers raised muted concerns about a potential global slowdown, leading markets to suspect the rate tightening cycle may not have much further to run.
“If we hear more dovish comments on the tightening cycle, this will drag the dollar lower and give another push to gold prices,” said Hussein Sayed, chief market strategist at FXTM.
The Fed raised rates three times so far this year and a fourth rate increase is expected next month.
“We will continue to see some consolidation between $1,200 and $1,250 for a couple of weeks until we see a kind of catalyst... this could be Brexit negotiations, the G20 meeting between US and China,” Sayed said.
“Unless we see more turbulence in emerging markets and industrialised country stock markets, then the outlook for gold is not positive,” a Germany-based analyst said.
In other precious metals, palladium was up 0.2pc at $1,180 per ounce, having climbed to an all-time high of $1,185.40 in the previous session. Silver slipped 0.1pc to $14.40 an ounce, while platinum rose 0.2pc to $848.20 per ounce.
Published in Dawn, November 20th, 2018
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