Gold prices rebound as dollar eases

Gold prices rebounded on Wednesday from a more than one-week low, supported by a softer dollar, even as easing geopolitical tensions, which would typically dampen gold's safe-haven appeal, failed to curb its momentum, reports Reuters.
Spot gold jumped 0.7 per cent to $2,651.27 per ounce, as of 09:13 a.m. ET (1413 GMT). US gold futures rose 1.1 per cent to $2,650.30.
The rebound followed a dramatic $100 plunge on Monday, marking gold's sharpest one-day drop in over five months, as safe-haven demand waned following the announcement of a long-negotiated ceasefire between Israel and Lebanon's Iran-backed Hezbollah.
Prices fell to their lowest level since Nov. 18 in the previous session.
"It appears as if the effect of a softer US dollar has been supporting gold prices in today's session," said Hamad Hussain, Assistant Climate and Commodities Economist at Capital Economics.
The dollar index slipped 0.8 per cent, hitting a 1-week low boosting gold's appeal for holders of other currencies.
Meanwhile, spot silver rose 0.2 per cent to $30.47 per ounce, platinum added 0.3 per cent to $930.75 and palladium was steady at $977.54.