Dollar languishes near 212month low
U.S. Fed minutes due at 1900 GMT
Silver up more than 1

Nov 21 Reuters Gold prices rose on Tuesday, supported by a weaker U.S. dollar and Treasury yields as investors look forward to minutes from the Federal Reserve39;s latest meeting for more guidance on its interest rate outlook.

Spot gold was up 0.7 at 1,991.69 per ounce, as of 0437 GMT. U.S. gold futures gained 0.6 to 1,993.50.

The dollar and the U.S. bond yields continue to come down. Demand from central banks is also quite strong. All these are bullish for gold. The market is reconsidering that drop we saw yesterday, said Edward Meir, a metals analyst who provides research for Marex.

The dollar fell to more than a 212month low as investors expect U.S. interest rates to fall next year. A weaker dollar makes gold less expensive for other currency holders.

Benchmark U.S. 10year Treasury yields hovered near twomonth lows touched last week.

Minutes from the Fed39;s latest meeting are due at 1900 GMT. Signs of slowing inflation in the United States have boosted expectations that the U.S. central bank was done raising interest rates.

Markets are widely expecting the Fed to leave rates unchanged in the December meeting and currently pricing in a greater than 50 chance of a rate cut of at least 25 basis points by May, according to CME39;s FedWatch Tool.

Lower interest rates decrease the opportunity cost of holding gold.

I think the minutes will be a nonevent … There was not…