This morning, the price of gold was seen to show an increase due to the continued weakening of the US dollar. Investors are looking to the minutes of the latest Fed meeting for more guidance on the outlook for interest rates.
Spot gold rose 0.6% to $1,988.29 an ounce and U.S. gold futures increased 0.5% to $1,990.10.
According to Marex metals analyst, Edward Meir said that the gold market is on the rise following the decline in the dollar due to US bond yields, the central bank's monetary policy projections and the reversal of previous falls.
The dollar fell to near two-month lows as investors expect US interest rates to be cut next year. A fall in the currency will make gold cheaper for holders of other currencies.
The results of the Fed's latest meeting show signs of inflation in the United States have raised expectations that the central bank has finished raising interest rates.
The market expects the Fed to leave interest rates unchanged at its December meeting and currently puts expectations at 50% for a rate cut of at least 25 basis points by May, according to FedWatch.
Richmond Fed President Thomas Barkin predicted that the inflationary situation will continue and cause the Fed to keep interest rates high beyond investors' expectations.
