Gold prices rose on bargain buying on Wednesday after the metal dropped to its lowest in nearly two months in the previous session and as the dollar paused ahead of upcoming US inflation data and remarks from Federal Reserve officials, reports Reuters.
Spot gold was up 0.4 per cent at $2,607.99 per ounce by 1133 GMT, after hitting its lowest since Sept. 20 on Tuesday. US gold futures rose 0.3 per cent to $2,613.90.
A line chart titled "Spot gold price in USD per oz" that tracks the metric over time.
The US dollar index was down 0.1 per cent after having climbed to its highest in over six months against major currencies.
"Gold saw a significant decline after the elections and it's now looking attractive again for medium-term gold bulls... they (Fed) are still on the path to cut rates, but remember also that they have already slowed from 50 bps (basis points) to 25 bps," said Quantitative Commodity Research analyst Peter Fertig.
The Fed cut interest rates by a quarter of a percentage point last week. Traders now see a 62 per cent chance of a 25-bp cut in the central bank's December meeting, versus 70 per cent a week ago, according to the CME's FedWatch Tool. Lower rates boost the appeal of holding gold, which yields no interest.
Last week, bullion logged its steepest weekly decline in over five months, as markets absorbed the implications of Donald Trump's victory and its potential impact on US rate expectations.
On Thursday, spot silver rose 0.5 per cent to $30.87, platinum fell 0.2 per cent to $945.59 and palladium gained 0.7 per cent to $950.58.
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