The gold prices It rallied on Monday as the dollar weakened, although the gains were capped by fears of an interest rate hike by the US Federal Reserve.
Spot gold was up 0.2% at $1,662.40 an ounce by 08:52 GMT. US gold futures settled at $1,672.30.
The dollar fell 0.3% against its rivals, making bullion priced in this currency less expensive for foreign buyers.
“The correction in the US dollar at the moment has certainly given gold a boost. But I suspect expectations of further rate hikes are limiting those gains.said Ross Norman, an independent analyst.
On Friday, the No. 2 Federal Reserve official added her full support for the US central bank’s plan to raise interest rates for a longer period to curb inflation.
Last month, the Fed raised its policy rate by 75 basis points, its third consecutive increase of this size, indicating more big hikes to come this year.
Gold is very sensitive to rising US interest rates as it increases the opportunity cost of pushing it away from the yield.
Bullion prices fell more than 8% in the July-September quarter, posting their worst quarterly performance since the end of March 2021.
Looking ahead, investors are awaiting Friday’s US non-farm payrolls data and a string of manufacturing PMI data to get an insight into the health of the global economy.
Spot silver rose 2.1% to $19.40 an ounce. Platinum rose 0.6 percent to $864.13 an ounce, and palladium jumped 1.3 percent to $2,184.91.
With information from Reuters