Gold prices rose as Asian markets reopened after a week-long holiday.
Bloomberg reported that gold for December delivery advanced 0.4 percent to $1,217.20 an ounce by 7:49 a.m. on Comex in New York, rising for a third day in the longest streak since Aug. 14. Bullion for immediate delivery gained 0.7 percent to $1,217.39 an ounce. Bullion dropped 1.9 percent last week, a move that erased all of its yearly gains.
The rise in gold prices today was most likely due to the U.S. dollar holding steady after its rapid ascent last week and the return of physical demand for the precious metal from China. The dollar did back off its growth, declining somewhat over the last few days.
Binary Tribune also noted that investors' expectations that the Federal Reserve will raise interest rates may have also stoked the gain that gold saw today. Higher interest rates in the future will likely lead to lower gold prices.
"If the Fed minutes today show discussions about specific timing of their interest-rate increase, that would boost the likelihood that the next policy statement will alter the wording around keeping borrowing costs low for an extended period. That will spur dollar buying," said Junichi Ishikawa, an analyst at IG Markets in Tokyo in a comment for Bloomberg.
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