Gold prices rose to their highest level in one month on Thursday in light holiday trade and as the dollar fell to a four-week low. Spot gold was up 0.4 percent at $1,292.20 an ounce at 0742 GMT, after earlier reaching its highest since November 29 at $1,292.67.
US gold futures were up 0.3 percent at $1,295.30 an ounce. The yellow metal has risen for a ninth straight day and is on track to register gains of over 1 percent this month and about 12 percent this year.
"It's the thin market and the dollar moving down that's pushing up gold," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong. "If the dollar continues to weaken, gold will be looking for $1,300 again." There could be some additional buying heading into resistance at that level, Leung said.
Gold prices have risen from a near five-month low of $1,235.92 touched earlier this month, as the dollar weakened after the US Federal Reserve kept its outlook for three rate rises in 2018 unchanged and as investors remained divided over the impact of US tax reform on economic growth.
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