Gold rose after the decline in USD boosted demand

Gold prices saw an increase on Thursday, receiving support from a decline in the dollar and lower US Treasury bond yields. Traders, meanwhile, awaited US economic data to gain further insights into the Federal Reserve’s monetary policy expectations.

Spot gold rose by 0.4 percent to reach $2,036.60 per ounce as of 0442 GMT. In the case of US gold futures, there was a 0.1 percent increase, bringing the price to $2,048.60.

The yield on US 10-year bonds settled near the five-month low it touched on Wednesday, influenced by the news of a drop in British inflation in November to its lowest level in more than two years.

Simultaneously, the dollar experienced a 0.1 percent decline against its counterparts, making gold more affordable for holders of other currencies.

Among other precious metals, silver rose by 0.6 percent in spot transactions, reaching $24.28 per ounce. Platinum also saw an increase of 0.8 percent, reaching $965.94, while palladium rose by 0.4 percent to $1,200.73.