Gold prices shoot up to 3-week high

Mumbai, Nov 23

Gold prices have crossed a three-week high as investments continue to pour into the precious metal on the expectation that US Federal Reserve will not be hiking interest rates. This has resulted in the dollar and US bond yields remaining subdued.

The price of gold in the international market on Wednesday was $2,000.38 per ounce on Wednesday.

US gold futures were steady at $2,002.40.

The macroeconomic backdrop is turning supportive for gold as moderating inflation in the US raises prospects for the end of the US interest rate hiking cycle.

"The decline in US yields and the US dollar are increasing the investment appeal for gold," according to ANZ analysts.

Lower interest rates decrease the opportunity cost of holding gold while a weaker dollar makes gold less expensive in Indian rupees.

Gold prices in India's major cities on November 22:

*Mumbai: Per 10 gram Rs 62,020 +380.00.

*Bangalore: Per 10 gram Rs 62,020 +380.00.

*Chennai: Per 10 gram Rs 62,510 +280.00.

*Delhi: Per 10 gram Rs 62,170 +380.00.

*Kolkata: Per 10 gram Rs 62,020 +380.00.