Bloomberg reported that the bank believed rates would rise gradually with the cycle peaking at a lower level than earlier rounds.

2004 was the last time the central bank last began tightening rates, with figures reaching 5.25% in 2006 and lasting into the following year.

DBS senior investment strategist Manish Jaradi said the "gradual hiking path" and the "general view of eventually lower rates compared with previous cycle" were a good sign for the precious metal.

US, European and Chinese data has suggested a reduction in the chances of a rate rise before the end of the year, with Moody's Analytics saying futures markets were gave only a 30% chance the move will occur in December.