Gold rises to two-week high as dollar stumbles

The dollar index dropped to a more than two-year low against its rivals, making gold cheaper for holders of other currencies.

The Fed’s new monetary policy strategy, which could result in inflation moving slightly higher and interest rates staying lower for longer, has triggered a sell-off in the dollar, driving inflows into safe-haven bullion.

The U.S. central bank’s new approach to monetary policy means a low unemployment rate on its own doesn’t warrant higher interest rates, Fed Vice Chair Richard Clarida said on Monday.

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