Gold hits 6-month peak on dollar dip, bets of Fed's rate-hike pause

Gold prices climbed to a six-month peak on Tuesday, buoyed by expectations that an end to the U.S. Federal Reserve's interest rate hike cycle would keep the dollar and yields under check.

Spot gold rose 0.1 per cent to $2,015.65 per ounce by 0243 GMT.

U.S. gold futures for December delivery rose 0.2 per cent to $2,016.10 per ounce.

• Also read: Gold likely to rise in 2024 on geopolitical issues, weak dollar

The dollar index touched a near three-month low, against its rivals, making gold less expensive for other currency holders.

Yields on 10-year Treasury notes hovered near two-month lows of 4.3630 per cent.

Recent data showing signs of slowing inflation in the U.S. has boosted expectations that the Fed could begin easing monetary conditions sooner than expected, with the market now awaiting PCE data - Fed's preferred inflation gauge - on Thursday.

• Also read: Bullion Cues: Gold testing a hurdle

Traders widely expect the U.S. central bank to hold rates in December, while pricing in about a 50-50 chance of easing in May next year, CME's FedWatch Tool shows.

Lower interest rates reduce the opportunity cost of holding non-interest-bearing bullion

Top consumer China's net gold imports via Hong Kong fell for a second consecutive month in October as a patchy economic recovery weighed on demand in the key bullion market, data on Monday showed.

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