Gold prices surge as dollar weakens, investors await US economic data

Gold prices rose on Thursday, driven by a weaker dollar, as investors awaited key US economic data that could provide insights into the Federal Reserve's future interest rate decisions.

Spot bullion prices climbed 0.6% to $2,648.37 an ounce in London on Wednesday, after the greenback and Treasuries slipped. A weaker dollar makes the precious metals less expensive for buyers in other currencies, boosting its appeal, News.Az reports, citing foreign media.

Traders will turn later to a slew of pre-Thanksgiving holiday US data, including a reading of the Federal Reserve’s preferred inflation gauge, initial jobless claims and an update on economic growth. Fed officials indicated support for a careful approach to rate cuts, according to minutes from their latest policy meeting.

Traders will turn later to a slew of pre-Thanksgiving holiday US data, including a reading of the Federal Reserve’s preferred inflation gauge, initial jobless claims and an update on economic growth. Fed officials indicated support for a careful approach to rate cuts, according to minutes from their latest policy meeting.

Gold fell earlier in the week, as Israel and Lebanese militant group Hezbollah came to an agreement on a 60-day suspension of hostilities, which started early Wednesday. Easing geopolitical tensions typically weigh on gold, diminishing its appeal as a safe haven asset.

The precious metal is still up more than 28% this year, despite falling this month after Donald Trump’s election victory sparked a rally in the dollar.

Silver traded in a narrow band Wednesday morning, while platinum and palladium rose. The Bloomberg Dollar Spot Index declined 0.4%.

News.Az