Gold hits 1-month high as dollar weakens further@MCX LIVE PRICES
Gold prices rose to their highest level in one month on Thursday in light holiday trade and as the dollar fell to a four-week low.
Spot gold was up 0.2 percent at $1,289.10 an ounce at 0322 GMT, after earlier reaching its best since Nov. 29 at $1,289.92.
U.S. gold futures were up 0.1 percent at $1,292.20 an ounce.
The yellow metal has risen for a ninth straight day and is on track to register gains of over 1 percent this month and about 12 percent this year.
"It's the thin market and the dollar moving down that's pushing up gold," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong. "If the dollar continues to weaken, gold will be looking for $1,300 again."
There could be some additional buying heading into resistance at that level, Leung said.
The dollar was on the defensive on Thursday, facing headwinds from a dip in U.S. 10-year bond yields, while commodity-linked currencies were bolstered by this week's rally in metal and oil prices.
Gold prices have risen from a near five-month low of $1,235.92 touched earlier this month, as the dollar weakened after the U.S. Federal Reserve kept its outlook for three rate rises in 2018 unchanged and as investors remained divided over the impact of U.S. tax reform on economic growth.
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