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Gold prices stabilized after touching a six-month high on Tuesday, as expectations that the Federal Reserve will end its interest rate hike cycle kept the dollar and Treasury yields under pressure.
Gold rose in spot transactions 0.1 percent to $2,015.33 per ounce by 0643 GMT, after reaching its highest levels since May 16. US gold futures for December delivery also increased 0.2 percent to $2,015.70 an ounce.
The dollar index touched its lowest levels since late August against major rival currencies, making gold less expensive for holders of other currencies. Ten-year Treasury bond yields hovered near their lowest levels in two months at 4.3630 percent.
Recent data showing signs of slowing inflation in the United States has reinforced expectations that the Federal Reserve may begin easing monetary policy sooner than expected. The market is currently awaiting data on personal consumption expenditures, the US Federal Reserve’s preferred measure of inflation, which is scheduled to be released on Thursday.
Low interest rates reduce the opportunity cost of holding non-yielding bullion.
As for other precious metals, silver settled in spot transactions at $24.62 per ounce, platinum rose 0.3 percent to $921.49, while palladium fell 0.6 percent to $1,064.15 per ounce.
