Gold futures climbed higher on Friday as the dollar stayed subdued amid thin volumes.
Rising hopes about a slowdown in interest rate hikes by the Federal Reserve contributed to increased demand for the yellow metal.
The dollar index, which was down at 105.69 in the Asian session, climbed to 106.42 around mid morning, but pared gains and dropped to around 106.00 subsequently.
Gold futures for February, the most active contract, moved up $8.40 at $1,768.80 an ounce. Gold futures for December ended up $8.40 at $1,754.00 an ounce.
Silver futures for December advanced $0.063 at $21.430 an ounce, while Copper futures for December rose to $3.6275 per pound, gaining $0.0095.
The minutes of the latest Federal Reserve meeting, released on Wednesday, provided further evidence the central bank is considering slowing the pace of its rate hikes as soon as next month.
The minutes said a “substantial majority” of meeting participants judged that a slowing in the pace of rate hikes would likely “soon be appropriate.”
A slower pace of rate hikes would better allow the Fed to assess progress toward its goals of maximum employment and price stability, the minutes said.
However, the Fed also said some participants felt the central bank will need to raise rates higher than previously expected in order to attain a sufficiently restrictive stance to bring inflation down.
The material has been provided by InstaForex Company – www.instaforex.com