A lower US dollar helped gold rise on Monday as investors braced for U.S. economic data later this week that might provide clues about the Federal Reserve’s policy direction. As of 1047 a.m. EDT (1447 GMT), spot gold was up 0.5% at $3,287.64 an ounce, having earlier in the day dropped to its lowest level since May 29.
The yellow metal increased 5.2% for the second consecutive quarter. At $3,299.40, U.S. gold futures were up 0.4%. Today’s weakened dollar is offering some assistance. However, we remain inside the clearly defined band that has prevailed since mid-May,” stated Peter Grant, senior metals strategist and vice president at Zaner Metals.
As market optimism over U.S. trade negotiations supported predictions for quicker interest rate reduction by the Federal Reserve, the dollar dropped versus the yen and touched its lowest level against the euro in over four years.
However, “Gold was under some pressure as geopolitical tensions and trade concerns subsided.” Thus, it keeps coiling in that range. I continue to believe that fresh all-time highs will be reached. For the second part of the year, $3,800 is probably the goal,” Grant continued.
Also Read:
Iran Will be a very different Country When its Supreme Leader Comes Out of Hiding
