Gold prices edged up on Thursday as the US dollar ticked lower, but bullion lacked impetus as investors remained on the sidelines in holiday-thinned trading with uncertainty around the Federal Reserve's rate path, reports Reuters.
Spot gold was 0.1 per cent higher at $1,991.70 per ounce at 1308 GMT, after hitting a three-week high of $2,007.29 on Tuesday. U.S. gold futures were steady at $1,993.00.
"Absent any fresh influences, I still don't think that gold has the momentum to maintain prices much above $2,000 for the rest of the year," said StoneX analyst Rhona O'Connell.
"Underlying forces are still supportive for the longer term - geopolitics, especially the Middle East and the probability of further banking stresses in the States and elsewhere - but unless either or both of these escalate, we are likely to see prices drift."
Supporting gold, the dollar eased 0.1 per cent against a basket of other major currencies. Benchmark US 10-year Treasury yields closed at a two-month low on Wednesday.
Lower interest rates decrease the opportunity cost of holding gold.
"Dollar is slightly cooling down after yesterday's (economic) data, but it's very feeble... it's just a normal market movement amidst lower liquidity," said ActivTrades senior analyst Ricardo Evangelista.
Gold up on weaker dollar ----
FE Team | Published: November 23, 2023 22:00:44
Gold up on weaker dollar ----
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