Gold hits 2-week high on hopes of smaller US rate hikes

NEW DELHI: Gold touched a two-week high on Thursday, supported by a weaker dollar after US Federal Reserve chair Jerome Powell’s speech sparked expectations of smaller interest rate hikes ahead.
Spot gold rose 0.4% to $1,774.62 per ounce, as of 0241 GMT, and hit its highest level since Nov. 16. US gold futures climbed 1.6% to $1,788.70.
The dollar index inched 0.3% lower. A weaker greenback makes gold more attractive for overseas buyers.
Powell effectively confirmed that the Fed will slow its pace of tightening, prompting the US dollar lower and gold higher, said City Index Analyst Matt Simpson.
Powell in his speech on Wednesday also signalled a protracted economic adjustment to a world where borrowing costs will remain high, inflation comes down slowly, and the US remains chronically short of workers.
Market participants now expect a 91% chance of a 50 basis points rate hike in…

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