Gold inches up on weaker dollar

FE Team | Published: January 18, 2024 23:02:48

SINGAPORE, Jan 18 (Reuters): Gold prices edged higher on Thursday, helped by a softer US dollar and the Middle East conflict lifting safe-haven appeal, while investors await further comments from a Federal Reserve official to gauge the central bank's interest rate trajectory.
Spot gold rose 0.3 per cent to $2,011.29 per ounce by 0955 GMT but was lingering near its five-week low hit in the previous session.
US gold futures also gained 0.3 per cent to $2,013.40.
The US on Wednesday put the Yemen-based Houthi rebels back on its list of terrorist groups, as the militants attacked their second US-operated vessel in the Red Sea region this week.
Gold is buoyed by "a small geopolitical risk premium and small reversal lower in the dollar," said Ole Hansen, Saxo Bank's head of commodity strategy.
The dollar, opens new tab pulled back after hitting a five-week peak in the previous session as US retail sales increased more than expected in December.
Traders will be watching out for remarks from Atlanta Fed President Raphael Bostic, who is expected to speak at two separate events later in the day.
Bostic on Sunday said inflation could "see-saw" if policymakers cut rates too soon, echoing Fed Governor Christopher Waller's remark this week that the Fed should not rush to lower interest rates until lower inflation can clearly be sustained.
Spot silver rose 0.3 per cent to $22.61 per ounce.
Platinum climbed 0.9 per cent to $891.32, and palladium gained 1.4 per cent to $928.25.