Gold prices are rising amid a weakening dollar

Gold prices moved to growth after a prolonged decline for four consecutive sessions. The growth driver was the general weakening of the US dollar. In addition, investors are still waiting for signals from the US Federal Reserve System regarding the further direction of monetary policy.

The current quote of the precious metal is $1,750.70 per ounce. Yesterday's low was fixed at $1,734. 

Analysts note that a slight weakening of the US currency gives spot gold prices the opportunity to gain a foothold in the middle of the $1700-1800 range. The dollar index has moved down, making gold more accessible to holders of other currencies. Earlier, investors actively bought the dollar amid concerns related to the increase in the number of new cases of coronavirus in China.

This week, the further dynamics of gold will depend on the publication of the minutes of the November Fed meeting scheduled for Wednesday. Market participants assume that the Fed will raise the interest rate by 50 basis points in December, and the peak of the interest rate may be reached in June 2023.

And if the central bank's rhetoric tightens, gold prices may begin to decline and test the strength of the support level located in the lower part of the $1700-1800 range. 

In addition, the drivers of gold prices before the December meeting will be data on the labor market and inflation in the United States.