Gold Futures Rise as December Fed Rate Cut Priced In

Gold Futures Rise as December Fed Rate Cut Priced In

Gold futures rise, finding some support after a volatile month. Futures are up 0.3% at $2,646.60 a troy ounce. The precious metal has gained as the U.S. Federal Reserve appears likely to continue interest-rate cuts at its December meeting, ING analysts write.

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Gold Edges Higher Amid Softer U.S. Dollar and CPI Expectations

Gold Edges Higher Amid Softer U.S. Dollar and CPI Expectations

Understanding the Relationship Between Gold Prices and the U.S. Dollar

The relationship between gold prices and the U.S. dollar is one characterized by an inverse correlation. Traditionally, when the dollar weakens, gold tends to rise in value, and this dynamic can be attributed to several interrelated factors. A weaker U.S. dollar enhances the purchasing power of foreign buyers, enabling them to acquire more gold for the same amount of their local currency. Consequently, this increased demand can lead to higher gold prices on the global market.

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