Gold prices touched near seven-month highs in Asian trade as weaker dollar and retreating yields fed demand for the metal after a string of dovish Fed signals stirred up wagers of potential rate cuts as soon as 2024.
Fed Governor Christopher Waller said on Tuesday that the central bank may start reducing rates next year if inflation slows further, sending gold up over 3% in November so far.
Gold peaked at $2,052 in Wednesday’s Asian session before trimming gains slightly, while the dollar index hit a near four-month trough. Lower yields also underpinned non-interest-bearing bullion.
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Cautions prevailed ahead of key economic indicators from the U.S. and China this week, while downbeat Japanese and eurozone data fed global slowdown worries.
Spot gold stood at $2,037 per ounce by 09:35 GMT. Technicals flagged an overbought market but analysts see further upside with year-end target at $2,080 and beyond as the Fed’s hawkish stance softens.
