Gold inched slightly higher in Asia on Monday, after setting tow straight weekly losses, as investors looked ahead to a speech by Federal Reserve Chair Janet Yellen due later in the day and U.S. March jobs report on top of this week’s economic calendar.
As of 08:17 GMT +3, spot Gold was up 0.22 percent or 2.86 points to trade at $1,295.52 an ounce, from $1,298.36 high hit earlier in session. The metal so far fell to $1,294.87 an ounce, a session low.
Gold traded below $1,300, near a six-week low, as Physical demand in top bullion buyer Asia has been quiet due to the recent volatility in gold prices, while growing optimism about the U.S. economy also weighed on the metal.
Gold prices have had a tough week since the Federal Reserve has voiced the time frame for an interest rate hike and the stronger U.S. data last week. The most recent U.S. jobless claims fell to a three-month low while the final U.S. fourth-quarter Gross Domestic Product (GDP) came out stronger than previously estimated.
Economists believe that the stronger U.S. data point towards improvement in the economy. Fed’s officials remarked that interest rates could rise in the second half of 2015 because of an expected rise in inflation.
What to Watch
Later in the day, the spotlight will shift to scheduled remarks from Federal Reserve Chair Janet Yellen.
Yellen is set to speak at the National Interagency Community Reinvestment Conference. With that in mind, traders will listen carefully to glean the tone of the central bank chief’s for confirmation of the monetary policy traction following the March policy meeting.
Needless to say, the presence of such cues is likely to bode well for the U.S. Dollar.
The dollar index, which tracks the dollar’s movements versus a basket of major currencies, pared its earlier gains as it retreated from a session high of 80.29 to hover near the session’s opening around 80.32.
- SpotSilver rose 0.26% to $19.82 an ounce
- Spot Platinum gained 64% to $1,417.20 an ounce
- Spot Palladium added 0.06% to $774.80 an ounce