Gold prices rose, reversing most of its previous session losses, supported by a weaker dollar and expectations that the U.S. Federal Reserve will adopt a dovish stance at its two-day monetary policy meeting later this week.
Spot gold was trading 0.4 percent up at $1,948.46 per ounce by 0605 GMT, having hit a high of $1966.57 on Thursday, its highest since September 2. U.S. gold futures climbed 0.5 percent to $1,957.25.
The dollar index slumped against its rivals, weighed down by growing expectations that the Federal Reserve is going to increase quantitative easing on Wednesday.
Market participants also await the Bank of Japan and the Bank of Englands respective policy decisions, due on Thursday. The BoJ is set to keep monetary policy steady at the rate review, but is likely to offer a brighter view on the economy, output and exports than in July. Meanwhile, the BoE is likely to keep interest rates on hold and is not expected to change the limit of its quantitative easing.
|AD - Recover your investment losses! Haselkorn & Thibaut, P.A. is a national law firm that specializes in fighting ONLY on behalf of investors. With a 95% success rate, let us help you recover your investment losses today. Call now 1 888-628-5590 or visit InvestmentFraudLawyers.com to schedule a free consultation and learn how our experience can help you recover your investment losses. No recovery, no fee.|
The euro rose as investors continued to digest European Central Bank President Christine Lagardes comments, citing Eurozone governments must keep spending heavily to aid the bloc’s recovery from its pandemic-induced recession. Moreover, Lagardes comments at a press conference on Thursday, stating that the central bank is not targeting exchange rates also boosted the single currency.
The upside in the safe-haven metal appears limited as risk sentiment slightly improved as hopes for a potential COVID-19 vaccine resurfaced after AstraZeneca resumed its phase-3 trial. AstraZeneca said on the weekend it has resumed British clinical trials of its COVID-19 vaccine after getting the approval from safety watchdogs.
The greenback against a basket of currencies traded 0.1 percent down at 93.22, having touched a low of 92.70 on Thursday, its lowest since September 4. The dollar index has lost more than 4 percent so far this quarter. The U.S. Treasury yields declined, with the benchmark 10-year note yield trading at 0.664 percent.
Friday’s data showing U.S. consumer prices surged in August had little impact on the dollar. U.S. consumer price index increased 0.4 percent last month, after gains of 0.6 percent in June and July.