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Gold benefits from lower dollar on Fed rate hike uncertainty

Spot gold gained 0.6 per cent to $1,270.11 and US gold futures rose $9 to $1,271.80 an ounce

Reuters  |  London 

Gold rose on Wednesday as the dollar weakened and treasury yields ticked lower amid uncertainty around the timing of a US rate increase. Spot gold gained 0.6 per cent to $1,270.11 an ounce at 0944 GMT. US gold futures rose $9 to $1,271.80 an ounce. Spot prices had shed about 7 per cent over the past three weeks, as markets re-priced the likelihood of a Federal Reserve's rate hike in December. The metal is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets. However, a retreat in the dollar, which fell 0.3 per cent ...

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First Published: Wed, October 19 2016. 15:28 IST