Gold Hits Its Highest Level in Nearly Two Weeks on Falling Dollar

Gold reached its highest level in nearly two weeks Tuesday on September 15th in light of the dollar’s weakness and as investor interest turned to the US Federal Reserve meeting in search of details regarding its plans to keep interest rates low while aiming to raise the rate of inflation.

The gold spot rose 0.5% to 1966.47 dollars per ounce, after recording earlier in the session 1967.46 dollars, the highest level since the second of September. And gold rose in futures trading in the United States 0.7% to 1976.90 dollars.

The dollar index fell against its rivals, making gold less expensive for holders of other currencies.

Traders are now looking forward to the Federal Reserve meeting, which will conclude tomorrow, Wednesday, the first since its Chairman, Jerome Powell, revealed a policy shift towards greater tolerance of inflation, effectively pledging to keep interest rates low for a longer period.

Gold, which has risen nearly 30% this year, is a hedge against inflation. Lower-cost interest rates reduce the missed opportunity to hold gold that is not yielding a return.

As for other precious metals, platinum rose 0.6% to $ 960.21 an ounce, after hitting its highest level since August 18 at $ 966. Silver gained 1% to $ 27.44, while palladium fell 0.1% to $ 2,311.78.