Gold has reached its highest level in 9 weeks thanks to the fall in the dollar and hopes of a pause in Fed interest rates.

The price of gold hit its highest level in nine weeks on Thursday thanks to a weaker dollar and bets that the US Federal Reserve could soon pause its cycle of rising interest rates.

Spot gold was up 0.5% at $1,987.18 per ounce at 3:25am GMT, its highest level since mid-May. U.S. gold futures were up 0.4% at $1,988.80

Lower interest rates favour bullion because it reduces the opportunity cost of holding unpaid bullion.

Cash rose 0.3% to $25.23 per ounce, platinum rose 0.1% to $973.81, while palladium fell 0.2% to $1,305.54. (Reporting by Seher Dareen in Bengaluru; Writing by Rashmi Aich and Sonia Cheema