WASHINGTON (dpa-AFX) - Gold futures settled higher on Tuesday, rising for a fifth straight session, as the dollar weakened amid continued optimism about monetary easing by major central banks, including the Federal Reserve.
The dollar index dropped to 100.51, losing about 0.34%.
Chicago Fed President Austan Goolsbee said the U.S. is currently on what he calls a 'golden path' and the Fed's half percentage point interest rate reduction last week 'made sense.' With inflation cooling from historic highs and approaching the central bank's target, he predicts more rate cuts are coming.
Neel Kashkari at the Minneapolis Fed said the balance of risks has shifted away from higher inflation and toward the risk of a further weakening of the labor market, warranting a lower federal funds rate.
His counterpart at the Atlanta Fed, Raphael Bostic also supported the Fed's action last week and agreed policy was too tight for the state of the economy.
Traders have been wagering on nearly three-quarters of a point of policy easing by year end and the upcoming jobs data due later this week may offer more clues on the direction of the economy.
Gold futures for September ended up by $24.70 or nearly 1% at $2,651.20 an ounce.
Silver futures for September closed up $1.3440 or about 4.4% at $32.111 an ounce, gaining for a third straight day.
Copper futures for September climbed to $4.4260 per pound, gaining $0.1370 or about 3.2%.
In economic news, consumer confidence in the U.S. has seen a notable deterioration in the month of September, according to a report released by the Conference Board on Tuesday.
The Conference Board said it consumer confidence index tumbled to 98.7 in September from an upwardly revised 105.6 in August. Economists had expected the index to edge down to 103.0 from the 103.3 originally reported for the previous month.
On the geopolitical front, Israel's military said today it struck dozens of Hezbollah targets in southern Lebanon overnight, a day after launching a wave of airstrikes against the Iran-backed group's sites in Lebanon's deadliest day in decades.
Hezbollah said it had attacked several Israeli military targets, including an explosives factory 60 km (37 miles) into Israel, with the Fadi series of rockets.
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