Gold prices inched up on Wednesday as U.S. Treasury yields slipped while markets awaited additional U.S. economic data to gauge the trajectory of interest rate cuts by the Federal Reserve.
In the UAE, gold rates gained AED2.25 with 24-carat gold rising to AED323 and 22-carat gold reaching AED299. In addition, 21-carat gold was priced at AED289.50 and 18-carat gold at AED248.
Globally, spot gold rose 0.23 percent to $2,666.73 as of 5:13 GMT while U.S. gold futures increased 0.17 percent to $2,683.55.
The U.S. dollar index and Treasury yields dipped, making bullion more attractive to other currency holders.
U.S. retail sales
U.S. monetary policy easing has been the key driver behind the recent rise in gold prices as it impacts safe-haven investment and demand for the precious metal. Other factors including the U.S. elections and geopolitical tensions in the Middle East will likely keep supporting gold prices in the near future.
While fears of worsening geopolitical conditions in the Middle East spurred some safe-haven demand for bullion recently, the stronger dollar outweighed demand following signs of resilience in the U.S. economy.
On the investor agenda this week are the U.S. retail sales data, industrial production and weekly jobless claims data due on Thursday.
According to the CME FedWatch tool, traders are currently pricing in a 93.5 percent chance of a 25-basis-point rate cut in November and only a 6.5 percent chance of keeping rates unchanged.
San Francisco Federal Reserve Bank President Mary Daly said the central bank will keep cutting rates as long as economic data meets expectations. Meanwhile, Atlanta Fed President Raphael Bostic said he expects just one more 25-basis-point reduction this year.
Read: Oil prices recover modestly amid Middle East stability concerns, weak demand
Other precious metals
As gold prices rose, the precious metals market saw positive movement with spot silver gaining 0.49 percent to $31.62 per ounce and platinum rising 0.90 percent to $993. Palladium also rose 0.31 percent to $1,012.50.
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