Gold Gains on Weaker Dollar; Traders Brace for Fed Rate Decision
Gold prices firmed on Monday, supported by a softer dollar, as investors awaited further details on the US-China trade relations, along with the Federal Reserve’s policy meeting due later this week.
Spot gold gained 0.5% to $3,256.85 an ounce, as of 0416 GMT. US gold futures rose 0.7% to $3,265.10.
The dollar was down 0.3% against its rivals, making gold more attractive for other currency holders.
“The US dollar is looking subdued ahead of the Fed meeting this week which is enabling gold to take a mild run higher,” KCM Trade’s Chief Market Analyst Tim Waterer said.
“We may see gold continue to operate in the $3,200-$3,350 range ahead of the Fed meeting. However, any new headlines on the trade deal could cause volatility to tick up once again.”
The market’s focus will be on the US central bank policy decision and speeches by several Fed officials due this week, for insights into future monetary policy trajectory.
