Gold prices up for 2nd straight session as traders weigh US policy prospects

Gold prices edged higher at settlement today, Nov. 14, thanks to the sharp drop in the US dollar and Treasury bond yields, amid investor optimism about the imminent end of the monetary tightening cycle.

Bullion for December delivery climbed by 0.85%, or $16.30, to finish at $1,966.50 per ounce.

Meanwhile, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, plunged by 1.40% to 104.13 points at 09:41 pm Makkah time.

Investors now forecast US interest rates to be kept unchanged during the Federal Reserve's upcoming meeting next December, with the potential of at least four rate cuts in 2024.

This follows the release of US inflation data that showed that price growth slowed on an annual basis to 3.2% in October, compared to 3.7% in the month before.