NEW YORK: Gold prices gained on Monday, helped by a slight pullback in the dollar as investors awaited a series of key central bank policy meetings this week, with the US Federal Reserve widely expected to hit pause on interest rate hikes.
Spot gold was up 0.3% to $1,928.59 per ounce by 12:22 p.m. EDT (1622 GMT). US gold futures gained 0.2% to $1,950.10.
The US dollar slipped 0.2% against its rivals, making gold less expensive for other currency holders.
“The market is becoming very focused on central bank requisitions ... the expectations are that they (Fed) will push the higher for longer narrative and that should keep investors concerned,” said Edward Moya, senior market analyst at OANDA.
The Fed’s policy decision is due on Wednesday, with traders pricing in a 99% chance of the central bank keeping interest rates steady in the 5.25% to 5.5% range, according to CME’s FedWatch Tool.
The Bank of England is seen raising rates by 25 basis points to 5.5% on Thursday. The Bank of Japan’s meeting is on Friday, with investors seeking more cues on outlook from Governor Kazuo Ueda after recent comments on ending negative rates.
Non-yielding gold tends to fall out of favour among investors when interest rates rise.
Chinese gold prices hit record highs last week, extending a months-long rally as consumers snap up the safe-haven asset to offset a depreciating yuan. Physical gold premiums also soared to new highs.
“While the developments in China are worth watching, we currently do not believe that this will change the outlook for the gold market,” said Julius Baer analyst Carsten Menke.
Spot silver rose 0.7% to $23.16 per ounce, platinum gained 0.6% to $930.94, while palladium slipped 0.8% to $1,238.26.
Comments
Comments are closed for this article.