Gold prices rebounded on Monday, having posted losses in the previous six sessions, with gains driven by a pause in the US dollar's rally, while investors await comments from the Federal Reserve officials for clarity on the interest rate trajectory, reports Reuters.
Spot gold rose 1.3 per cent to $2,593.32 per ounce by 1206 GMT, moving away from a two-month low hit on Thursday. U. gold futures were up 1.1 per cent at $2,597.80.
A line chart titled "Spot gold price in USD per oz" that tracks the metric over time.
Last week, gold prices saw their biggest weekly decline in over three years as expectations of less aggressive interest rate cuts by the Fed boosted the dollar.
However, the dollar was holding flat below Thursday's one-year high after rising 1.6 per cent last week. A softer dollar makes bullion less expensive for buyers holding other currencies.
"We can look to the dollar for a significant part of the current gold price corrections ... I'm not saying you've found a solid physical floor yet, but clearly, some opportunistic buying is coming in to support the market as well," independent analyst Ross Norman said.
Spot silver rose 1.8 per cent to $30.74 per ounce, platinum added 1.6 per cent at $953.34 and palladium climbed 2.1 per cent to $970.48.
"As the year ends, we will see volatility in gold prices and there'll be some books clearing and profit-taking, regardless of what the Fed does in December."
Recent U.S. economic data has reduced expectations for a December rate cut by the Fed. At least seven U.S. central bank officials are due to speak this week.
Higher interest rates make holding gold, which doesn't pay any interest, less attractive.
"President Trump's inauguration is likely to see an ongoing strengthening of the US dollar, which is negative for gold in the short to medium term. However, as his stated policies are likely to be significantly inflationary in the long term, this will benefit gold," said Michael Langford, chief investment officer at Scorpion Minerals.
Spot silver rose 1.8 per cent to $30.74 per ounce, platinum added 1.6 per cent at $953.34 and palladium climbed 2.1 per cent to $970.48.
