Gold prices rose to their highest levels in nearly two months on Thursday, buoyed by a weaker US dollar and growing expectations that the Federal Reserve will conclude its aggressive cycle of rate hikes at its meeting next week.
Spot gold rose 0.2% to $1,981.89 an ounce, near its highest level since May 17 at $1,987.39.
US gold futures rose 0.2% to 1,983.80 dollars an ounce.
The US dollar index was trading near 15-month lows, while the Chinese yuan gained after authorities adjusted cross-border financing rules and major state-owned banks were seen selling dollars.
A weaker dollar makes gold more expensive for overseas buyers, while lower interest rates tend to be beneficial for bullion because they reduce the opportunity cost of holding a non-yielding asset.
Gold prices have risen around 5% since the end of June, when they hit a 3-month low, with recent price gains mainly on the back of US economic readings supporting views that the Fed will raise interest rates on July 26 by 25 basis points, another increase in the current stress cycle.
