Insignia Consultants | Gold extends gains on Fed pause bets, dollar retreat
Gold extends gains on Fed pause bets, dollar retreat
Nov 28 (Reuters) - Gold rose for a fourth consecutive session on Tuesday and hit a more than six-month high, driven by a retreating dollar and expectations that the U.S. Federal Reserve has finished hiking interest rates.
Spot gold gained 0.8% to $2,030.49 per ounce by 10:50 a.m. ET (1550 GMT), highest since May 11.
U.S. gold futures for December delivery rose 0.9% to $2,031.30.
Gold continues to be bullish in the near term, with the dollar index in a downtrend on hopes the Fed will no longer raise interest rates and will maybe even cut rates by springtime, Jim Wyckoff, senior analyst at Kitco Metals, said.
However, "if (U.S.) GDP numbers and inflation indicators are stronger than expected, it will dent traders' enthusiasm in bullion," Wyckoff added.
Traders widely expect the U.S. central bank to leave rates unchanged in December, and are pricing in about a 50% chance of cuts in May next year, CME's FedWatch Tool shows.
Lower interest rates reduce the opportunity cost of holding the non-interest-bearing bullion.
