Gold Rises to a Two-week High as US Dollar Falters

Gold prices rose on Tuesday, September 1st, to their highest level in nearly two weeks, with the dollar retreating to its lowest level in several years amid betting that US interest rates will remain low for a longer period under the new US Federal Reserve policy framework.

The gold spot rose 0.8% to $ 1985.64 an ounce by 06:44 GMT, after hitting its highest level since August 19 at $ 1989.42 earlier in the session. Gold rose 0.8% in futures trading in the United States to $ 1994.40.

The dollar index fell to its lowest level in more than two years against its rivals, making gold cheaper for holders of other currencies.

The Fed’s new monetary policy strategy, which may lead to a slight increase in the rate of inflation and keeping interest rates low for a longer period, has led to selling the dollar and directing funds to safe-haven gold.

As for the other precious metals, silver rose 1.5% to $ 28.64 an ounce after touching the highest level since August 11. Platinum rose 1.4% to $ 942.69 and palladium rose 1.7% to $ 2,280.82.