Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Gold prices gain slightly in Asia, all eyes on Fed

Published 03/19/2017, 08:43 PM
Updated 03/19/2017, 08:44 PM
© Reuters.  Gold egdes up in Asia
HG
-

Investing.com - Gold prices rose slightly in Asia on Monday with the focus ahead on Fed policymaker comments this week.

Gold for April delivery inched up 0.02% to $1,230.40 a troy ounce on the Comex division of the New York Mercantile Exchange. Copper was last quoted at $2.680 a pound with operations at key mines in Indonesia and Chile in focus as talks on regulations and wages respectively continue.

The market this week awaits Fed speakers, including Chair Janet Yellen, as they look for more clues on the timing of the next U.S. rate hike and also eye data on inflation from the UK and euro zone surveys on business activity as Britain braces for Brexit. Markets in Japan are shut on Monday for a holiday.

Last week, gold prices rose on Friday as expectations of a slower pace of U.S. interest rates hikes than some investors had anticipated continued to weigh on the dollar.

But the U.S. central bank did not flag any plan to speed up the pace of monetary tightening, with Yellen reiterating that the pace of rate hikes would be gradual. Expectations for a slower pace of monetary tightening pressured the dollar to five week lows against a basket of the other major currencies.

The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.