'Dovish' Fed Gives Hope Gold Continues Momentum Reaches $2,000!


 Gold prices are now down slightly after hitting a two-week high due to movements in US treasury yields. However, gold bullion remains supported by expectations of peak rates.

Spot gold fell 0.2% to $1,975.80 an ounce after rising 2.2% last week. Whereas, the U.S. gold futures fell 0.3% to $1,978.50.

The benchmark US 10-year treasury yield rose to 4.4647% after hitting a two-month low and reducing interest-free gold's appeal.

A sluggish US jobs market and weaker-than-expected consumer inflation reports prompted markets to revise their forecasts.

Many traders expect the Fed to keep rates unchanged at its December 12-13 policy meeting. Lower interest rates put pressure on the dollar and bond yields.

Meanwhile, the US dollar slumped to a two-month low and that made gold cheaper for holders of other currencies.

Investors await the US central bank's final meeting of the year for clarification on interest rate decisions. Asian stocks got off to a slow start as market valuations stretched amid expectations of aggressive global policy easing next year.

In separate news, the US and Israeli governments reported that an agreement to free hostages in the Middle East is getting closer even though the war is still in a critical situation.