Gold climbs on dollar retreat

Gold prices rose on Thursday, driven by a retreating US dollar and safe-haven demand on the back of the Middle East conflict while investors await further US economic data for a steer on interest rate expectations, reports Reuters.

Spot gold gained 0.1 per cent to $2,027.80 an ounce by 1300 GMT, having hit $2,031.99 on Wednesday for its highest since February 9. US gold futures rose 0.2 per cent to $2,038.10.

The dollar weakened against a basket of currencies. The dollar index was down 0.2 per cent, making bullion more appealing to buyers holding other currencies.

Markets are pricing in about a 72 per cent chance of a June rate cut, the CME Fed Watch Tool shows.

In other precious metals, spot platinum was up 1.5 per cent at $895.90 an ounce, palladium rose 0.3 per cent to $951.97 and silver gained 0.6 per cent to $23.02.