NEW YORK: Gold prices rose to an over two-week high on Tuesday, as the US dollar dipped on expectations that the Federal Reserve is done hiking interest rates, while investors awaited minutes from the central bank’s latest meeting for further policy cues.

Spot gold climbed 0.5% to $1,987.79 per ounce, as of 1215 GMT, after hitting its highest level since Nov. 3 earlier in the session. US gold futures gained 0.5% to $1,989.60.

Expectations of a dovish Fed in 2024 have triggered a decline in the US dollar, helping gold recover from recent lows, said Carlo Alberto De Casa, market analyst at Kinesis Money.

The dollar fell to more than a 2-1/2-month low, making gold less expensive for other currency holders. Meanwhile, the benchmark US 10-year Treasury yields hovered near two-month lows touched last week. Investor focus is now on the minutes from the Fed’s latest meeting, due at 1900 GMT.

Signs of slowing inflation in the United States have boosted expectations that the central bank was done raising interest rates. Markets are widely expecting the Fed to leave rates unchanged in the December meeting and are currently pricing in a 60% chance of a rate cut of at least 25 basis points by May, according to CME’s FedWatch Tool.

“Now that concerns about the conflict in the Middle East have abated noticeably, the US interest rate outlook has regained the upper hand for gold,” Commerzbank said in a note. Lower interest rates decrease the opportunity cost of holding gold.

Citi Research expects to remain bullish on the outlook for silver over the next 6-12 months, and expects prices to touch $28 per ounce, it said in a note. “Silver balances remain bullish for 2023/24 and we see strong demand from EVs and solar.”

Spot silver rose 0.6% to $23.53 per ounce, platinum gained 0.7% to $924.70, and palladium was up 0.4% at $1,082.22.