By: Mahmoud Gamal
Mubasher: Gold prices recovered on Monday after falling to a five-month low following the US dollar's decline from a 14-year high. However, growing expectations of a US rate hike in December has limited the precious metal's gains.
Spot gold edged up 0.06% to $1,209.7 an ounce by 03:30 GMT on Monday, while gold future contracts for December delivery increased 0.6% to $1,211.25 per ounce.
The dollar index, which measures the US currency against a basket of major currencies, slipped 0.05% to 101.36, on Friday, after reaching highs not seen since April 2003.
US Federal Reserve chair Janet Yellen stated in her testimony before Congress on Thursday that a rate hike will come "relatively soon."
The rise in gold prices on Monday was likely due to the metal's presence at "technically attractive buying levels", market analyst Mahmoud Al-Tamer told Mubasher.
The fact that no specific date has been set for the increase in US interest rates also played a role in the precious metal's gains today, he added.
Investors in precious metals remain cautious, particularly after news that president elect Donald Trump stated his support for the rate hike, Al-Tamer noted.
Gold prices are negatively affected by increased rates, which boost the dollar.
The dollar index may see downward corrections until the anticipated jobs report is released in two weeks, the analyst stated.
The jobs data will have a major role in whether or not rates will be raised this year, which in turn will clearly determine the dollar and gold movements in the coming period, he added.
Gold is currently trading between $1,220 and $1,280, which are good levels for medium-term investments, Al-Tamer told Mubasher.
Translated by: Nada Adel Sobhi
