London — Gold climbed on Monday and was likely to see further gains after the dollar slumped to multi-month lows on the back of data that pointed to weak US inflation and dampened prospects for rate hikes. "The dollar continues to be on the back foot and yields have dropped back somewhat from their relatively elevated positioning lately," said analyst Jonathan Butler at Mitsubishi in London. Spot gold was up 0.6% at $1,235.57 per ounce at 1.53pm GMT, while US gold futures for August delivery rose 0.6% to $1,234.70 per ounce. "If gold remains at $1,230 or goes higher, there’s an elevated risk that some of those short positions might start to be reversed and that would give some further upside to gold," Butler added. Recent soft US inflation and domestic demand figures undermined arguments for the US Federal Reserve to raise interest rates, with traders cutting back their bets on the likelihood of an increase in December. The dollar held at a 10-month low against a basket of currencie...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.