The weaker dollar is also pushing up commodity prices, including gold.
The gold price has risen to $1,755 per ounce, towards the three-month highs set earlier this month.
Tai Wong, a senior trader at Heraeus Precious Metals in New York, says last night’s minutes from the Federal Reserve had cheered markets:
“Gold traded higher in a relief rally after the Fed minutes contained no hawkish surprises, and just about confirmed the pace of hikes would drop to 50 bps in December.
“The financial markets are convinced the Fed is overtightening so it is dovishly interpreting the minutes which contains no real surprises given Fed commentary the past two weeks.”