Gold rises as the dollar and Treasury yields decline

Gold prices rose on Thursday, supported by a decline in the dollar and Treasury bond yields, amid increasing investor bets that the Federal Reserve may have reached the end of its cycle of raising interest rates after keeping them unchanged.

By 0924 GMT, gold in spot transactions rose 0.3 percent to $1,987.90 an ounce, and US gold futures contracts increased 0.5 percent to $1,996.40.

Carlo Alberto De Casa, market analyst at Kinesis Money, said that gold prices have to increase slightly before they can continue rising because the long-term outlook is still positive.

On Wednesday, the reserve kept interest rates steady, as was widely expected.

Policymakers are finding it difficult to determine whether tightening monetary policy is already enough to control inflation, or whether an economy that is consistently beating expectations may need further adjustment.

According to CME Group’s FeedWatch service, traders expect 72 percent that the Federal Reserve will hold interest rates again in December.

The dollar index fell 0.5 percent, and US standard ten-year Treasury bond yields fell to their lowest levels in more than two weeks.

As for other precious metals, silver rose in spot transactions by 0.3 percent to $23.04 per ounce. Platinum increased 1 percent to $929.53. Palladium settled at $1,102.56.