Gold rises on weak dollar, eyes Fed meeting minutes for rate insights

November 21, 2023 (MLN): Gold prices rose on Tuesday, supported by a weaker U.S. dollar and Treasury yields as investors look forward to minutes from the Federal Reserve's latest meeting for more guidance on its interest rate outlook, as Reuters reported.

Spot gold was up 0.7% at $1,991.69 per ounce, as of 0437 GMT. U.S. gold futures gained 0.6% to $1,993.50.

"The dollar and the U.S. bond yields continue to come down. Demand from central banks is also quite strong. All these are bullish for gold. The market is reconsidering that drop we saw yesterday," said Edward Meir, a metals analyst who provides research for Marex.

The dollar fell to more than a 2-1/2-month low as investors expect U.S. interest rates to fall next year. A weaker dollar makes gold less expensive for other currency holders.

Benchmark U.S. 10-year Treasury yields hovered near two-month lows touched last week.

Minutes from the Fed's latest meeting are due at 1900 GMT. Signs of slowing inflation in the United States have boosted expectations that the U.S. central bank was done raising interest rates.

Inflation is likely to remain "stubborn" and force the Fed to keep interest rates elevated for longer than investors anticipate, Richmond Fed president Thomas Barkin said.

Spot silver rose 1.6% to $23.74 per ounce, platinum gained 0.4% to $922.10, while palladium eased 0.3% to $1,074.44.

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