Gold climbs above US$2,000 on softer US dollar, bets on Fed pause

GOLD prices rose on Monday well above a key US$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.

Spot gold rose 0.7 per cent to US$2,015.09 per ounce by 0135 GMT.

US gold futures for December delivery rose 0.6 per cent to US$2,015.80 per ounce.

The dollar index edged down by 0.1 per cent 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 per cent chance of a rate cut in May next year, according to CME’s FedWatch Tool.

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Gold leaps above US$2,000 as dollar weakens on Fed pause bets

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Lower interest rates decrease the opportunity cost of holding gold.

Spot silver gained 1.9 per cent to US$24.76 per ounce, platinum was up 0.1 per cent to US$931.49. Palladium rose 0.6 per cent to US$1,074.94 per ounce. REUTERS