Gold rose to the highest in two weeks amid speculation that U.S. policy makers will hold off on raising interest rates until later this year.
Federal Reserve Chair Janet Yellen signaled last week that the central bank is in no hurry to raise rates after the Fed dropped a pledge to be patient on tightening. Higher borrowing costs cut gold’s allure because the metal generally offers returns only through price gains.
The dollar touched the lowest in two weeks against a basket of 10 currencies after Fed Vice Chairman Stanley Fischer said on Monday that while higher rates will probably be warranted by before the end of the year, policy makers want to be “reasonably confident” that inflation is rising toward their 2 percent goal.
On the Comex in New York, gold futures for April delivery rose 0.3 percent to settle at $1,191.40 an ounce at 1:39 p.m. Earlier, the price reached $1,194.50, the highest for a most-active contract since March 6.
Holdings in exchange-traded products backed by gold climbed on Monday for the first time in a month.
Source : Bloomberg