Gold Touches 3-Week High as Rate-Hike Fears Subside, Dollar Weakens

Silver could hit $20 an ounce by end of 2016: commodity expert

by Mark DeCambre
Market Watch

Gold futures climbed Wednesday, touching their highest level in three weeks as the U.S. dollar weakened and fears of an interest-rate rise, which might diminish the appeal of the metal, continued to fade.

August gold GCQ6, +1.36% gained $12.90, or 1.1%, to $1,260.40 an ounce, after seeing relatively tepid trade Tuesday as investors readjust their expectations for rate increases in the wake of last Friday’s disappointing labor-market report. The metal is on track to score its highest close since May 18 according to FactSet data.

The market is pricing in extremely low odds that the Federal Reserve will raise rates this month and investors see a relatively slim chance of Fed boss Janet Yellen lifting rates in July. That belief has offered a runway for assets that don’t bear interest to trade higher.

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