Gold bounces as dollar slips on bets Fed may slow rate hikes
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Gold rose on Wednesday, as the dollar and U.S. Treasury yields fell amid expectations that the Federal Reserve might signal a slowdown in the pace of its interest rate hikes.
Spot gold gained 0.7% to $1,663.26 per ounce by 0644 GMT, while U.S. gold futures rose 0.6% to $1,667.10.
"With the bearish positioning for gold prices, the possibility of a strong near-term rally could be on the table if any indications of a rate slowdown is presented from the Fed," said IG market strategist Yeap Jun Rong.
Yields on the 10-year Treasury note fell as weak U.S. data fuelled speculation of a less hawkish Fed, while the dollar index touched its lowest level since Oct. 5, lifting gold's appeal for those holding other currencies.
Data on Tuesday showed U.S. consumer confidence ebbed in October, home prices fell sharply in August and there were signs that the Fed's
