Gold climbs as weaker dollar and cheaper oil ease inflation fears
Spot gold touched $4,126.25 an ounce as traders looked ahead to US inflation figures that could shape Federal Reserve interest rate decisions.
Gold prices firmed on Monday as a softer US dollar and falling oil costs reduced worries about inflation, Qatar News Agency (QNA) reported.
Spot gold climbed as high as 1.5 percent, reaching $4,126.25 an ounce during the session, (Qatar News Agency (QNA))
US gold futures for December delivery rose to $4,135.50 an ounce, (Qatar News Agency (QNA))
Other precious metals also moved higher, with spot silver rising as much as 1.4 percent to $52.61 an ounce.
Platinum gained 1.9 percent to $1,561.57 an ounce, while palladium edged up 0.5 percent to $1,028.57 an ounce.
Traders were waiting for the latest US inflation data, which may provide hints about the likely path of Federal Reserve interest rates.
Gold is widely regarded as a store of value, and its price often moves in the opposite direction to the dollar.
Because the metal pays no interest, lower interest rates reduce the cost of holding it, so expectations about Federal Reserve policy have a strong influence on its price.
Falling crude oil prices can ease expectations of inflation, which may take pressure off central banks and support demand for precious metals.
Investors also often buy gold and other precious metals as a hedge during periods of economic uncertainty and market volatility.