Bengalur — Gold prices rose on Monday as the dollar fell on the expectation that the US Federal Reserve will not raise rates this year and as Asian markets dropped after lacklustre China data reflected a slowdown in the world's second-largest economy. Gold tends to gain on the expectation of lower interest rates, as they reduce the opportunity cost of holding a nonyielding bullion and trims the demand for US dollar, making the metal less expensive for holders in other currencies. Spot gold was up 0.3% at $1,291.42/oz, as of 4.11am GMT. US gold futures were up 0.2% at $1,291.40/oz. The weakness in equities and US dollar appear to be a bonding providing support for gold, said Michael McCarthy, chief strategist, CMC Markets and Stockbroking. “There is a key resistance between $1,290 and $1,310. Gold will need to do substantial work to rise above this level as generally we see traders shorting into it.” The US central bank had the ability to be patient on monetary policy given stable pr...

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