The dollar index hovered at a low of more than a month, increasing the attractiveness of bullion for buyers with other currencies.
The underlying support for gold at the moment is also the renewed rebound in oil prices, which could lead to more inflation and weigh on economic growth, said Ole Hansen, the analyst at Saxo Bank.
“Gold buying as a possible hedge against any policy error has not died out, and remains one of the reasons why gold continues to find support,” he said.
Investors are now expecting an eventual slowdown in US monetary policy tightening after the Federal Reserve raises interest rates in June and July.
Rising rates raise the opportunity cost of holding non-interest-bearing bullion while boosting the dollar.
In other precious metals, spot silver was down 0.1% at $22.09 an ounce; platinum was up 0.9% at $962.08; and palladium rose 1.1% to $2,084.65, after hitting a nearly two-week high.
By Eileen Soreng, Reuters Agency
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
