Gold is rebounding, with Comex futures climbing back to US$2 000 an ounce, as the dollar extended its slump and investors bet US interest rates would stay lower for longer.
The dollar dropped to the lowest in over two years, fuelling a broad advance in commodities.
Spot gold gained more than 3 percent over the past three sessions, following its first monthly loss since March, as the Federal Reserve’s new approach on inflation added support. That came after a slowdown in buying from bullion-backed exchange-traded funds raised concern that a key driver of the metal’s record rally may be losing momentum.
Bullion is benefiting from the dollar’s weakness coupled with continued risk hedging, and a breach of the US$2 000 mark will “fan the flames of interest”, said Rhona O’Connell. — Bloomberg.