GOLD prices inched higher on Monday following last week’s sharp declines, although expectations of slow US interest rate cuts limited the recovery.
Spot gold gained 0.4 per cent to US$2,571.11 per ounce by 0041 GMT, after hitting a two-month low last week. Gold posted its biggest weekly decline in more than three years on Friday.
US gold futures rose 0.2 per cent to US$2,575.70.
The dollar was looking to extend its bull run. A stronger dollar makes bullion more expensive for other currency holders.
Strong US economic and inflation data continue to reshape the debate among Federal Reserve policymakers over the pace and extent of rate cuts as investors last week further downgraded their expectations for a rate reduction in December.
At least seven US central bank officials are due to speak this week. Traders will keep an eye for further rate cut cues.
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Higher interest rates reduce the appeal of holding non-yielding bullion.
Data on Friday showed that US retail sales increased slightly more than expected in October, suggesting the economy kicked off the fourth quarter on a strong note.
Physical gold premiums in India climbed to a near four-month high last week, driven by a rebound in demand as prices dropped.
Elsewhere, President Joe Biden’s administration has allowed Ukraine to use US-made weapons to strike deep into Russia, two US officials and a source familiar with the decision said on Sunday, in a significant reversal of Washington’s policy in the Ukraine-Russia conflict.
Spot silver firmed 0.6 per cent to US$30.39 per ounce, platinum was up 0.6 per cent at US$944.57 and palladium climbed 1.7 per cent to US$966.66. REUTERS
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