The rise came with a decline in the pace of the rise in oil prices, following US President Donald Trump’s indication that the attacks on Iran may be short-lived, which eased fears of a long war that would push energy prices and inflation further.
The yellow metal also benefited from the decline in the dollar, as the weakness of the US currency makes buying gold less expensive for holders of other currencies.
In the interest file, New York Federal Reserve Chairman John Williams said that inflation continues to decline, coinciding with the slowdown in employment in American companies during August. This eased rate hike bets, although caution remains ahead of the Federal Reserve’s upcoming meeting in two weeks.
In parallel, silver rose 0.1% to $65.38 per ounce.
There was little change in platinum and palladium, while the Bloomberg Dollar Spot Index, a measure of the US currency, stabilized after falling 0.2% in the previous session. (Bloomberg)
