Gold prices rose for a fifth straight session on Tuesday to hit a two-week high, drawing strength from a weaker dollar after last week’s mixed jobs data helped ease rate hike fears.
Spot gold climbed 0.9 percent to $1,807.11 per ounce in London, rising for a fifth day, with some short-covering along with technical buying contributing to higher prices. U.S. gold futures were up 1.4 percent at $1,807.80.
The dollar has started the week on a subdued note as investors looked ahead to minutes from the Federal Reserve’s June meeting for more clues on the when the U.S. central bank will start tightening monetary policy.
The Fed’s June meeting marked a notable shift in the Fed’s outlook, with the central bank’s updated Summary of Economic Projections reflecting both increased GDP and inflation expectations and the possibility of two rate hikes by the end of 2023.
While several Fed officials brought forward projections for interest rate hikes, Fed Chair Jerome Powell said in his press conference following the meeting that it was time to “retire” the notion of “talking about talking about tapering.”