London — A weaker dollar helped to push gold prices higher on Thursday, but gains were limited as the market waited for clues on the pace of US interest rate increases from a meeting of the Federal Reserve next week. Spot gold was up 0.2% at $1,298.26/oz by 10.53am GMT, while US gold futures for August delivery firmed by 0.1% to $1,302.40. "The rise in prices is due to the dollar," said Capital Economics analyst Simona Gambarini. "The dollar has been the main driver of prices in recent weeks." A weaker dollar is good for gold because it makes the metal cheaper for buyers using other currencies and can fuel demand. However, Gambarini said investors were in wait-and-see mode ahead of the Fed meeting on June 12-13, when they expect both a rate rise and signals on the outlook for US monetary policy. Interest rates are important for gold because higher rates tend to boost the dollar and also push up bond yields, reducing the appeal of non-yielding bullion. Gold fell from almost one-and-a...
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