Gold scales a 6-month high; near-term outlook bullish

(Representative Image)

Gold prices hit a six-month high on November 29 on the back of a retreating dollar and rising expectations of a cut in key policy rates by the US Federal Reserve.

Spot gold traded at $2,041.55 per ounce, gaining 1.4 petrcent, the highest since May 10 and US Gold futures rose 1.4 percent to $2,040.

Also see: Gold Rates today

"If (US) GDP numbers and inflation indicators are stronger than expected, it will dent traders' enthusiasm in bullion," Jim Wyckoff, senior analyst at Kitco Metals, told Reuters.

Fed policymakers look like they will close out the year with current interest rates. Governor Christopher Waller said he is "increasingly confident" that the policy is in the right spot.

The dollar index touched its lowest since mid-August, making bullion less expensive for overseas buyers. Investors said they will monitor U.S. Personal Consumption Expenditures (PCE) data.

Also see: Gold Rates in India

"A sense of caution ahead of another busy week for global financial markets is also lending support to the precious metal. Given how the $2,000 level proved an extremely tough resistance to conquer, gold could end up dipping without a potent fundamental catalyst," FXTM senior research analyst Lukman Otunuga said.

Silver climbed 1.4 percent to $24.97 per ounce, platinum closed at 2.3 percent at $939.80, while palladium fell 1.4 percent to $1,055.59 per ounce.

(With inputs from Reuters)