Gold prices rose slightly, as traders reduced their bets on the Federal Reserve raising interest rates this month, following comments from its chairman, Kevin Warsh.
The price of the precious metal rose by as much as 0.5% to approach $4,190 an ounce, recovering most of its losses from the previous week.
Traders reduced their bets on a quarter-point interest rate hike to less than 17% after comments from the Federal Reserve Chair were interpreted as supporting keeping rates unchanged at next week's meeting. High borrowing costs are putting downward pressure on gold, which does not offer a yield.
Last week's high US inflation data had boosted expectations of a US interest rate hike, which supported the dollar, but comments from Wollast halted its gains.
Gold also received support from a sell-off in technology stocks driven by concerns about the artificial intelligence investment boom, along with a rise in bond prices that pushed yields down.
Gold maintains the $4000 level
Gold prices have held above the key support level of $4,000 an ounce since August, as its safe-haven status has helped to anchor prices after a war-induced sell-off pushed it into bear market territory earlier this year. Investors have recently increased their holdings in gold-backed exchange-traded funds (ETFs), with these funds' holdings rising for 13 consecutive weeks.
However, the precious metal remains down about 20% since the outbreak of the conflict between the United States and Iran in late February. Pressure on gold persists in the near term, as traders continue to price in a high probability of another interest rate hike before the end of the year.
Spot gold rose 0.5% to $4,184.55 an ounce at 2:01 p.m. Singapore time, while silver climbed 1.5% to $57.82.
Platinum and palladium rose, and the Bloomberg Dollar Spot Index, which measures the performance of the US currency, edged down slightly after falling 0.3% last week.
