Gold rises from multi-month lows as dollar weakens
Nov 28 (Reuters) – Gold rose over 1 percent on Monday,
recovering from 9-1/2 month lows, as the U.S. dollar extended
losses after touching a near 14-year high last week.
Spot gold had gained 0.92 percent to $1,193.80 an
ounce by 0532 GMT after climbing as high as $1,197.54 earlier in
The metal marked its lowest since Feb. 8 at $1,171.21 per
ounce in the previous session.
U.S. gold futures were up 1.3 percent at $1,193.50
The dollar index, which measures the greenback
against a basket of currencies, was down 0.67 percent at 100.810
after slipping 0.2 percent in the previous session as U.S.
Treasury yields eased from recent peaks.
"The dollar strength has eased somewhat and we may be seeing
some buying interest re-enter the market," ANZ analyst Daniel
"There has been some heavy selling over the past couple of
weeks, so there may be a touch of technical-based buying."
The metal has fallen about 7 percent so far this month on
the back of a stronger U.S. dollar and surging bond yields as
investors bet that U.S. President-elect Donald Trump’s policies
would spur growth and inflation.
Federal Reserve policymakers appeared confident on the eve
of the presidential election that the economy was strengthening
enough to warrant an interest rate hike, minutes from the Fed’s
early November meeting showed.
A stronger greenback makes dollar-denominated gold expensive
for holders of other currencies, while higher interest rates
could dent the appeal of non-yielding bullion.