Gold prices rise as the US dollar pulls back

Gold prices rose after the dollar pulled back from an 18-month high, with spot gold increasing by 0.5 percent to reach $4,132 per ounce. Meanwhile, markets are closely monitoring expectations regarding the US Federal Reserve's interest rate policy.

Decline in the dollar supports gold

Gold prices turned upward on Thursday following the depreciation of the dollar, with spot gold rising 0.5 percent to $4,132 per ounce as Asian markets opened.

The precious metal had hit its lowest level since August 5 on Wednesday, driven by a stronger dollar and rising US Treasury bond yields. The pullback in the dollar made gold cheaper.

Short-term assessments by experts

Chris Weston, Head of Research at Pepperstone, noted that gold still faces certain hurdles in the short term and that the market currently favors sellers.

Weston stated that for gold to enter a stronger upward trend, the $4,275 resistance level needs to be broken.

Fed's interest rate policy and expectations

Markets are currently assessing expectations regarding the US Federal Reserve's interest rate policy. According to the minutes from the Fed's meeting last month, officials were divided over the justifications for a rate hike.

While the probability of the Fed raising interest rates at the end of this month is priced at 18 percent in the markets, a rate hike in January is priced in at 80 percent.

Global economy warnings from the IMF

International Monetary Fund Managing Director Kristalina Georgieva emphasized that the global economy faces risks related to high energy prices, record public debts, and rapid growth in artificial intelligence investments.

Georgieva urged governments to exercise caution in their fiscal and monetary policies.