Gold prices rise driven by a weakening dollar as investors look ahead to U.S. economic data due this week. This may influence the Fed’s monetary policy going forward for the next few months.
Gold futures contracts recovered 0.20% to $1,814.30 an ounce as of 4:05 GMT.
Meanwhile, the dollar weakened to near two-week lows after Fed Chair Powell spoke out against an immediate start to taper. This news will make people inside the Fed rather unpalatable, as there were divided camps after all.
Powell stressed with regard to tapering that this does not mean that at the same time interest rates will be raised. Nevertheless, one must closely monitor the incoming data to draw the right conclusions, said Powell. With inflation still above 5% and continued high liquidity in the market, this is also urgently needed.
Investors are also waiting for the latest U.S. jobs report being released on Friday, including the number of non-farm payrolls. Here we will see whether the U.S. economy is further on the recovery path.
Other precious metals:
Silver fell 0.1%.
Platinum was down 0.3% to $1,008.oo.
Palladium fell 0.7%.
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