Gold prices rose on Monday well above a key $2,000 level, supported by a weaker US dollar and on bets that the US Federal Reserve is done with its interest rate hike cycle.
FUNDAMENTALS
* Spot gold rose 0.7% to $2,015.09 per ounce by 01:35 GMT.
* US gold futures for December delivery rose 0.6% to $2,015.80 per ounce.
* The dollar index edged down by 0.1% against its rivals, not far from a more than 2-month low level touched last week, making gold less expensive for other currency holders.
* Last week’s Fed minutes showed the central bank would proceed “carefully” and that “all participants judged it appropriate to maintain” the current rate setting.
* Traders widely expect the Fed to leave rates unchanged in December, while pricing in about a 60% chance of a rate cut in May next year, according to CME’s FedWatch Tool.
* Lower interest rates decrease the opportunity cost of holding gold.
* Japan’s October services PPI came in at 2.3%, up from a revised 2% in September, adding to the belief that the Bank of Japan will end negative rates in 2024.
* Indian exchanges are marking a full-day closure on the occasion of Gurunanak Jayanti, while the Multi Commodity Exchange of India will open for its evening trading session.
* Spot silver gained 1.9% to $24.76 per ounce, platinum was up 0.1% to $931.49. Palladium rose 0.6% to $1,074.94 per ounce.