Gold rises, but holds near 6-month minimum on US rate hike hopes
On Monday, gold ticked higher during European hours, though kept to the lowest level since May on hopes for a Federal Reserve rate lift as well as fiscal stimulus by President-elect Donald Trump.
In New York, December delivery gold futures rose 0.51%, hitting $1,214.85 per troy ounce. On Friday, gold dropped to $1,201.30, a value not seen since May 30.
Market experts warned that the outlook for gold is still cloudy in the near-term, especially considering that an American interest rate lift in December is currently a near-certainty.
Prices of the number one precious metal are down more than 7% so far this month amid upbeat sentiment that increased American fiscal spending under a Trump administration will stimulate economic growth as well as inflation, which would open an era of higher interest rates.
Meanwhile, the yield on the American 10-year Treasury descended 0.4 basis points, showing 2.333% in early trade, thus pulling back from a 12-month peak of 2.364% hit last week.