Gold prices recover as US dollar slips

BENGALURU: Gold rose on Monday, extending its recovery from a 10-1/2-month low hit last week, as the US dollar slipped from a 14-year peak against a basket of currencies.
Spot gold edged up 0.7 per cent to $1,141.61 an ounce by 0651 GMT. The bullion touched $1,122.35 on Thursday, its weakest since February 2.
Gold now appears to have found a base, however, upside will be limited as investors look to other markets for yield, ANZ said in a note. US gold futures gained 0.6 per cent to $1,143.60 per ounce on Monday.
Gold is likely to rebound to $1,160-$1,180 levels before the year-end, said Mark To, head of research at Hong Kong’s Wing Fung Financial Group.
The dollar index, which measures the greenback against a basket of currencies, fell 0.4 per cent to 102.590. The dollar hit a 14-year high of 103.56 following the Federal Reserve’s hawkish interest rate forecasts on Wednesday.
The Fed hiked rates for the first time in a year last week and projected three more increases in 2017, up from the two projected in September.
Richmond Fed President Jeffrey Lacker said on Friday the Fed will likely need to raise interest rates more than three times next year and faces challenges in gradually cooling off the US economy.— Reuters