WASHINGTON (dpa-AFX) - Gold prices climbed higher on Tuesday, rising for the sixth straight session, as the dollar fell and bond yields dropped amid rising hopes the Fed is unlikely to be aggressive with rate cuts after data showed a drop in the pace of U.S. manufacturing and construction activity last month.
The dollar index dropped to 110.11 a little past noon today, and was last seen at 110.40, down 1.2% from the previous close.
Gold futures for December ended higher by $28.50 or about 1.7% at $1,730.50 an ounce, the highest close since mid-September.
Silver futures for December settled at $21.099 an ounce, up $0.510 or about 2.5%. Copper futures for December ended higher by $0.0800 at $3.4900 per pound,
While U.S. manufacturing activity grew at its slowest pace in nearly 2-1/2 years, construction spending fell by the most in 1-1/2 years in August, separate data showed on Monday. The data raising hopes for a dovish pivot from the U.S. Federal Reserve.
The Bank of England is the first to pivot back to quantitative easing, claiming to restore market functioning and reduce risks of contagion.
Traders now look ahead to U.S. non-farm payrolls data due on Friday, for more clarity on the Fed's policy tightening.
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