Bengaluru — Gold prices inched up to their highest in more than a week on Tuesday, drawing support from international political tension and a softer dollar, but expectation of another US Federal Reserve interest rate hike this year capped the metal’s upward momentum. Spot gold was up 0.2% at $1,286.86 an ounce at 3.39am GMT, after earlier in the session touching its best since late September at $1288.19. US gold futures for December delivery climbed 0.3% to $1,289.30/oz. Uncertainty over what US President Trump might do about North Korea kept a certain degree of risk aversion alive in markets, and that was providing temporary support to gold prices, said Mark To, head of research at Hong Kong’s Wing Fung Financial Group. A softer dollar on Tuesday was also lending support but growing expectations that the Fed would raise interest rates again this year checked gold’s gains. Federal funds futures showed traders were pricing in a nearly 90% chance of a US interest rate hike in December...
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