Bullion hits 3-week high on weak dollar

dubai — Gold prices edged up on Tuesday to more than a threeweek high on a weaker dollar, while palladium hit its highest since February 2001.

Spot gold was trading 0.3 per cent higher at $1,278.04 per ounce at 0715 GMT, after hitting its highest level since December 1 at $1,279.19.

US gold futures rose 0.3 per cent to $1,282.50 an ounce.

Anaemic US consumption data on Friday helped gold, while the dollar remained under pressure in thin trading in Asia, said Jeffrey Halley, senior market analyst at Oanda.

“With North Korea’s Constitution Day Holiday on Wednesday, there may also be an element of risk hedging in play for regional markets at the moment,” Halley said.

US growth prospects dimmed on Friday as data showed spending outpaced income in November and the Federal Reserve’s preferred inflation measure — the personal consumption expenditures price index that excludes food and energy — rose by just 0.1 per cent in November.

The dollar index edged down 0.1 per cent to 93.273.

Last week, gold posted its second consecutive weekly gain and closed above its 200-day moving average.

Adding a touch of bullishness to gold was the data from US Commodity Futures Trading Commission on Friday, which showed that hedge funds and money managers had increased their net long stance in gold in the week to December 19.