LONDON: Gold prices hit a two-week high on Tuesday as the dollar fell on fading prospects of an imminent increase in US interest rates and expectations of stronger demand from the physical market.

Spot gold was up 0.5 per cent at $1,240.51 an ounce at 1346 GMT, having touched $1,242.52, its highest since July 3.

US gold futures rose 0.2pc to $1,239.80. The dollar sank to a 10-month low against a basket of currencies, making dollar-denominated metals cheaper for holders of other currencies, which could boost demand. “We see gold averaging around $1,300 over the third quarter,” said ING commodities strategist Warren Patterson. “Indian imports are rising after the very poor year, last year. We expect that trend to continue even with the tax changes.”

Silver gained 1pc to $16.23 an ounce after touching a two-week high at $16.26. Platinum gained 0.4pc to $925.1 while palladium slipped by 0.1pc to $863.7.

Published in Dawn, July 19th, 2017