Gold futures rallied to their highest levels in seven months, buoyed by a weaker US dollar and growing expectations of a dovish tilt at the Federal Reserve. Can gold prices touch $1,900 in the coming sessions, or is this a signal that the yellow metal is overbought?

February gold futures surged $11.50, or 0.62%, to $1,857.60 per ounce at 17:03 GMT on Wednesday on the COMEX division of the New York Mercantile Exchange. Gold prices are trading at their best levels in nearly seven months and are poised to record four straight session gains.

Silver, the sister commodity to gold, struggled to stay above $24. March silver futures tumbled $0.176, or 0.73%, to $24.06 an ounce. The white metal has had an incredible three months, soaring nearly 16%.

The precious metal’s winning streak has been largely in part to a weaker greenback.

The US Dollar Index (DXY) slumped 0.29% to 104.22, from an opening of 104.58. The index, which gauges the greenback against a basket of currencies, has slumped more than 5% in the last three months. A weaker buck is bullish for dollar-denominated commodities because it makes it cheaper for foreign investors to purchase.

The other factor has been investors gradually penciling in two key developments on the monetary policy front: the Federal Reserve slowing down the pace and size of interest rate hikes and potentially cutting interest rates amid slowing economic growth.

Gold generally benefits from a lower-rate economy since it reduces the opportunity cost of holding non-yielding bullion.

Investors also monitored abysmal data on Wednesday. As FX Daily Report reported:

“In December, the Institute for Supply Management’s (ISM) Manufacturing Purchasing Managers’ Index (PMI) weakened to 48.4, down from 49 in November – anything below 50 indicates contraction. This was also below the market estimate of 48.5 and the second constructive month of falling factory activity.

According to ISM, the worst reading since February 2016 was caused by a drop in new orders, new export orders, production, and supplier deliveries. But employment rebounded and price pressures eased.”

Right now, the next major point to watch is $1,875.

In other metal markets, February copper futures fell $0.025, or 0.66%, to $3.742 per pound. February platinum futures slipped $2.40, or 0.22%, to $1,090.90 an ounce. February palladium futures soared $92.60, or 5.47%, to $1,785.50 per ounce.