The dollar index dropped to its lowest since September 29, making the precious metal cheaper for buyers holding other currencies.
The gold price was slightly down on Monday morning after hitting a nearly two-week peak earlier in the day due to the weaker US dollar.
Spot gold fell 0.1 per cent to $1,761.37 per ounce by 9.20am UAE time, after hitting $1,765.54, its highest since September 23, earlier in the day.
In the UAE, the precious metal prices remained unchanged. The Dubai Gold and Jewellery Group data showed 24K trading at Dh213.25 per gram, 22K at Dh200.5, 21K at Dh191.25 and 18K at Dh164.0 on Monday morning.
The dollar index dropped to its lowest since September 29, making gold cheaper for buyers holding other currencies.
The US Federal Reserve’s conditions for raising interest rates could be met by the end of 2022, Cleveland Fed Bank President Loretta Mester said on Friday, adding she expects inflation to come back down to the central bank’s target next year.
Gold is traditionally seen as an inflation hedge, although reduced central bank stimulus and interest rate hikes tend to push government bond yields up, in turn translating into a higher opportunity cost for gold that pays no interest.
(Except for the headline, this story has not been edited by WC Times staff and is published from a syndicated feed.)