Gold prices hovered near the key $2,000 level on Wednesday, as expectations of an end to the US Federal Reserve's rate hike cycle kept the dollar and US bond yields subdued, reports Reuters.
Spot gold was up 0.1 per cent at $2,000.38 per ounce as of 1201 GMT, after rising as high as $2006.19 earlier in the session. Bullion scaled a three-week high of $2,007.29 on Tuesday.
"The macroeconomic backdrop is turning supportive (for gold) as moderating inflation in the US raises prospects for the end of the US interest rate hiking cycle. The decline in US yields and the US dollar are increasing the investment appeal for gold," wrote analysts at ANZ in a note.
Fed officials agreed at their last policy meeting that they would proceed "carefully" and only raise interest rates if progress in controlling inflation faltered, minutes of the Oct. 31-Nov. 1 gathering showed.
Markets are confident there won't be another rate hike, and are currently pricing in a nearly 60 per cent chance of a rate cut of at least 25 basis points by May, according to CME's FedWatch Tool.
Spot silver rose 0.5 per cent to $23.84 per ounce, while platinum was steady at $934.44. Palladium slipped 0.9 per cent to $1,068.98.
Gold hovers near $2,000 as Fed pause bets lend support
FE Team | Published: November 22, 2023 21:38:11
Gold hovers near $2,000 as Fed pause bets lend support
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