Gold prices rally on weaker US dollar, bond yields

Gold prices ended in the green today, Nov. 2, as investors absorbed the Federal Reserve's latest decision to fix interest rates amid increased safe-haven demand in light of geopolitical tensions in the Middle East.

Bullion for December delivery gained 0.30%, or $6, to close at $1,993.50 per ounce, after touching $1,999.20 in early trading.

Data released today showed that unemployment claims in the US rose to 217,000 applications in the week ended Oct. 28, notching a seven-week high.

Meanwhile, all eyes are on the US monthly jobs report due tomorrow, Nov. 3.

Following in the Fed’s footsteps, central banks in the UK and Norway held interest rates steady during their recent policy meetings, signaling the possibility of a rate hike later, if necessary, in the fight against inflationary pressures.

The US dollar index, which measures the performance of the US currency against a basket of six major currencies, contracted by 0.70% to 106.15 points at 08:29 pm Makkah time.