The weakening of the dollar made bullion, which is priced in the greenback, more affordable for investors using other currencies.
“For weeks, gold has been treated as a liquidity asset sold to cover volatility and margin calls elsewhere, but at current levels, it is now looking more like a value proposition for investors, which is why it’s back in favour today,” said Tim Waterer, chief market analyst at KCM Trade.
“However, hawkish central banks wary of persistent oil-driven inflation, continue to act as a heavy lid on gold’s ambitions to the upside, keeping any rally firmly in check.”
