Gold prices bounced off the nine-month lows they ended at last week as the highflying dollar cooled a bit on Monday.
Gold futures slid Friday to their lowest finish since February. The yellow metal was undercut by dollar strength and growing expectations that the Federal Reserve will not only announce an interest-rate increase at its meeting in December but could also signal a quicker pace of rate hikes next year. This sentiment pulled prices for the metal down for a second consecutive week.
But early Monday, gold futures for December delivery GCZ6, +0.52% rose $6.50, or 0.6%, to $1,215.60 an ounce. Gold settled at $1,208.70 Friday, ending about 1.3% lower for the week. The settlement was the lowest since mid-February, according to FactSet data.
The ICE U.S. Dollar Index DXY, -0.56% fell 0.4% after rising on Friday for a 10th straight day to hit 101.54, its highest since April 2003.
“Bets on a steeper Fed rate hike path after the U.S. presidential election have undermined demand for anti-fiat and non-interest-bearing assets,” including gold, said Ilya Spivak, currency analyst with Daily FX. “A lull in top-tier news flow may allow for a corrective retracement in the week ahead, but prices will probably remain highly sensitive to headline risk as the [President-elect Donald] Trump cabinet takes shape.”
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