Gold prices climbed a six-month peak on Monday, supported by a weaker US dollar and on bets that the US Federal Reserve is done with its interest rate hike cycle, while the focus shifted to US inflation data due later this week.
Spot gold was up 0.4 percent at $2,009.69 per ounce. US gold futures rose 0.3 percent to $2,009.50.
“What’s moving gold at the moment is the lower US dollar because of the recent soft data,” said Kyle Rodda, a financial market analyst at Capital.com.
“Economic figures coming out of the US this week, both on the growth and inflation front, will make or break a case for whether gold remains above $2,000.”
Gold rose sharply earlier in the session, hitting as high as $2,017.82 an ounce.
However, “it might have been just characteristic of a sort of thinner Asian market,” Rodda added.
The dollar index edged down 0.1 percent against its rivals, not far from a more than 2-month low level touched last week, making gold less expensive for other currency holders.
Market focus now shifts to the revised US third-quarter GDP figures due on Wednesday and the US PCE price index – Federal Reserve’s preferred inflation gauge – on Thursday. – Reuters
