Gold hit an almost two-week high on Tuesday, driven by a softer dollar and expected that the Federal Reserve will strengthen its accommodative monetary policy. Gold was up 0.4 percent at $ 1,964.34 an ounce at 0931 GMT (3:01 pm in India), up from $ 1,968.80 an ounce on September 2. US gold futures rose 0.6 percent to $ 1,975.20 an ounce.
Saxo Bank analyst Ole Hansen said “the weakness of the dollar is doing its part, but continued support from the FOMC (Federal Open Market Committee) is expected, which has helped the market.”
The dollar index fell, making gold less attractive to buyers of other currencies, as participants waited for the Fed’s two-day policy to end on Wednesday.
ABN AMRO analyst Georgette Bole said “the US Fed’s worst scenario is already reflected in the gold price”, the central bank’s guidance on how long it can keep rates low and average inflation forecasts important Huh.
The committee said that US Treasury Secretary Steven Menuchin and Fed Chair Jerome Powell would testify before the Senate Banking Committee on Coronovirus Relief.
The unprecedented monetary stimulus package and low interest rate environment has led bullion to a record level above $ 2,000 an ounce so far this year, rising 29.5 percent, as it is considered a hedge against potential inflation and currency deviations.
“The fact that gold prices remain below $ 2,000, even though the dollar has been under pressure in recent weeks, is a sign of fatigue … ETFs (exchange-traded funds) are at peak levels and speculators need to stay on their own. It is hesitant to increase the positions, ”said Ms. Bole of ABN Amro.
After hitting an all-time high of $ 968 since August 18, platinum rose 0.6 percent to $ 960.03 an ounce.
Silver rose 0.9 percent to $ 27.40 an ounce and palladium rose 0.6 percent to $ 2,327.50.