Gold prices reach seven-month high

Shafaq News / Gold prices touched their highest level in nearly seven months on Wednesday, buoyed by the weakening dollar and US bond yields, amid increasing investor confidence that the Federal Reserve will cut interest rates in the first half of next year.

By 06:32 GMT, spot gold rose 0.2% to $2,044.69 per ounce, reaching its highest level since May 5th. USgold futures for December delivery also gained 0.3% to $2,045.30 per ounce.

The decline in interest rates reduces the opportunity cost of holding non-yielding gold, attracting investor interest.

Investor focus now turns to the revised US Gross Domestic Product (GDP) numbers for the third quarter, set to be released on Wednesday, and core personal consumption expenditure data, a key inflation gauge for the central bank, due on Thursday.

The dollar index fell to its lowest in over three months against its rivals, making gold less expensive for holders of other currencies, as the index heads towards its worst monthly performance in a year.

Yields on 10-year Treasury bonds fell to their lowest in over two months at 4.2629%.

In terms of other precious metals, spot silver slipped 0.2% to $24.96 per ounce, platinum dropped 0.3% to $936.78, while palladium rose 0.2% to $1,056.62 per ounce