Gold prices edged higher on December 11, supported by hopes that the U.S. Federal Reserve could pause its rate hike cycle sooner than expected and as the dollar slipped after the previous session’s rally. Spot gold was up 0.2 percent at $1,246.62 per ounce, as of 0430 GMT. It touched its highest in nearly five months at $1,250.55 in the prior session. U.S. gold futures were 0.2 percent higher at $1,251.4 per ounce.
Markets still see an increase in December but even one further hike in 2019 is now being questioned whereas two of them were fully priced in just a month ago,” said Ilya Spivak, a currency strategist for DailyFX.
Weakening U.S. dollar outlook and very dovish pivots from the Fed, a lot of uncertainty boxed around equity markets… It can still turn quite negative, so this is why gold remains a good hedge against a lot of market risks,” said Stephen Innes, APAC trading head at OANDA in Singapore.
Among other precious metals, spot silver was up 0.3 percent at $14.57 per ounce, while palladium rose 0.3 percent to $1,221.35.
Platinum was down 0.4 percent at $782.10 per ounce. Prices had slipped to their lowest since Sept. 10 at $773.50 in the previous session.
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