Gold prices rose to a six-month high on growing belief that the US Federal Reserve is done raising interest rates, at least for the year. A weaker dollar also boosted the price of the precious metal.
Spot gold prices rose 0.6% to $2,013.10 a triple ounce (31.1 grams) during Asian trading, the highest price since mid-May, the Financial Times reported.
The rise in the price of gold was supported by the declining value of the dollar, which weakened by about 3% against a basket of currencies this month. Soft economic data in the US contributed to the belief that interest rates in the country are unlikely to rise further this year.
Later this week, gold traders will watch US GDP and personal consumption inflation data. Quarterly US GDP is expected to increase from 4.9% to 5% annually, while it is estimated that personal consumption inflation for October could decline from 0.4% to 0.1%, reports FX Street.