Gold prices inch higher on softer dollar

GOLD prices edged up on Monday and hovered near the key US$1,800-level, as a softer US dollar made the greenback-priced bullion cheaper for buyers holding other currencies.

Spot gold rose 0.1 per cent to US$1,800.02 per ounce as of 0027 GMT. Prices hit their highest level since Aug. 10 at US$1,804.46 in the previous session. US gold futures were up 0.2 per cent at US$1,812.60. The dollar index was down 0.1 per cent. US employers hired more workers than expected in November and increased wages, shrugging off mounting worries of a recession, but that will probably not stop the Federal Reserve from slowing the pace of its interest rate hikes starting this month. Lower interest rates tend to be beneficial for gold as it reduces the opportunity cost of holding the non-yielding asset. The London Bullion Market Association(LBMA) is creating a database of Russian gold bars held by banks in London to help prevent sanctions evasion by Russian companies or the Russian central bank, the industry group said on Friday. Physical gold demand stalled in India last week on higher prices, while premiums fell in top consumer China as Covid-19 restrictions dulled activity. Spot silver gained 0.5 per cent to US$23.25, platinum rose 0.8 per cent to US$1,022.74 and palladium edged up 0.5 per cent to US$1,908.32. REUTERS