*
Gold prices advance for third consecutive session
*
Dollar near two-month low
(Adds comment and updates prices)
By Seher Dareen
April 13 (Reuters) - Gold prices stayed strongly
supported above $2,000 on Thursday boosted by bets that the U.S.
Federal Reserve might pause or slow the pace of rate hikes and
its predictions of mild recession this year.
Spot gold was up 0.6% to $2,026.26 per ounce by
1126 GMT, about $40 off record highs hit in 2020. U.S. gold
futures gained 0.8% to $2,040.20.
Gold was supported after data on Wednesday showed the U.S.
Consumer Price Index (CPI) rose 0.1% last month, after advancing
0.4% in February, raising hopes that the Fed was nearing the end
of tightening cycle.
These expectations were reinforced by minutes of the Fed's
March meeting that indicated several policymakers considered
pausing rate increases and projected that recent banking sector
stress would tip the economy into recession.
While traders were nervous about an economic recession and
extension of the banking crisis, gold is likely to remain bid,
yet is likely to remain prone to profit taking on the highs,
said independent analyst Ross Norman.
Safe haven gold tends to gain during times of economic or
financial uncertainty, while lower rates also lift its appeal as
it does not bear interest.
The dollar was close to its lowest since early February,
thereby making gold cheaper for holders of other currencies. A combination of rising expectations of a dovish Fed pivot,
recession fears, and a weaker dollar are lifting gold and could
help the precious metal reach a fresh yearly high, said Fiona
Cincotta, senior financial markets analyst at City Index said in
a note
Gold needs to gain acceptance above $2,020 to test the
yearly high of $2,032, while on the downside, immediate support
can be seen at $2,000-$2,001, Cincotta added.
Spot silver was up 0.4% to $25.58 per ounce,
holding near a one-year high hit in the previous session.
Platinum jumped 1.3% to $1,028.36 and palladium was up 0.1% to $1,461.46.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
xau ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Seher Dareen and Kavya Guduru in Bengaluru;
editing by Jason Neely)
