Gold prices hit two-week highs on Thursday, as the US dollar and Treasury yields stumbled on the Federal Reserve’s cautious approach on interest rates, while investors awaited a key inflation report for more clarity on future policy path.
Spot gold rose 0.2 percent to $1,877.67 per ounce, its highest level since Sept. 29. US gold futures were up 0.2 percent at $1,890.80.
The dollar index and US Treasury yields were rooted near two-week lows, making non-interest-paying gold more attractive.
Minutes of the Fed’s September meeting showed growing uncertainty around the path of the US economy pushed policymakers into a newly cautious stance last month, a position reaffirmed by top Fed officials in a series of statements this week.
“We are almost at the end of interest rates hikes and there could probably be a last one of 25 basis points, which would not have a significant impact on the market because this is largely expected,” said Brian Lan, managing director at Singapore dealer GoldSilver Central.
“But one thing for sure is that people would be expecting interest rates will still continue to remain high … so precious metals price will remain (broadly) subdued.”
