Gold ticks higher at close thanks to weaker US dollar

Gold prices ticked higher at close today, Sept. 11, as traders awaited the release of US inflation data this week in a bid to assess the path of monetary policy.

At settlement, bullion for December delivery stood at $1,947.20 an ounce, climbing by 0.25%, or $4.50.

Meanwhile, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, shed 0.55% to 104.55 points at 08:55 pm Makkah time, after surging last week to a six-month peak.

Gold prices will encounter hindrance in the medium term should the US economy manages to avoid a recession, said Rupert Rowling, market analyst at Kinesis Money, in a note.

Markets are pricing in a 93% chance that the Federal Reserve will hold steady to the current key rates at the coming meeting on Sept. 19-20, with a 41% probability of a rate hike decision in the November meeting, the CME FedWatch Tool showed.