The price of gold has hit a six-month high of $2,017.82 U.S. per ounce as the American dollar continues to weaken.
Gold prices have now risen for two consecutive weeks and are at their highest level since May of this year as the U.S. dollar retreats on expectations that the U.S. Federal Reserve is done raising interest rates.
The greenback has been declining in recent weeks following weaker-than-expected economic data, which has raised bets that the U.S. central bank will hold off on any further rate hikes.
Futures traders widely expect the Fed to hold rates steady in December of this year and have priced in a 60% chance of an interest rate cut in May of next year.
The U.S. dollar fell 0.3% last week and has now declined for two consecutive weeks.
The fall in the U.S. dollar, as well as forecasts that interest rates will be cut in 2024, are proving to be a tailwind for gold, pushing the price of the precious metal upwards.
Investor worries about the Israel-Hamas conflict have also boosted gold’s price in recent weeks.
The price of gold remains near its all-time high of $2,072.49 U.S. an ounce reached in August 2020 during the Covid-19 pandemic.
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