By Brijesh Patel
Oct 17 – Gold prices rose on Monday, helped by a slight pullback in the dollar and US Treasury yields, although fears persist that the Federal Reserve will raise interest rates further to curb rising inflation.
* At 0929 GMTSpot gold was up 0.9% at $1,655.90 an ounce, after losing more than 3% last week, its worst result since July. US gold futures were up 0.7% at $1,660.40.
* “Gold is benefiting from dollar weakness today, after the pound rallied amid expectations that more tax cuts will be reversed,” said Xiao Fu, an analyst at Bank of China International.
* “Meanwhile, Treasury yields were down. However, with the IPC If the US economy remains high, the Fed could raise rates another 75 basis points in early November and make further hikes in December. This could reintroduce macroeconomic headwinds for gold,” he added.
* The yield on benchmark 10-year notes was down slightly after hitting its highest level since 2008 last week. A lower yield lowers the opportunity cost of holding bullion, which does not bear interest.
* The dollar fell 0.1% against a basket of six major currencies, making the gold metal cheaper for buyers with other currencies.
* In other precious metals, spot silver rose 1.7% to $18.56 an ounce; platinum gained 1.3% to $910; and palladium was up 1.6% at $2,019.84.
