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Gold Prices Recover After Largest Weekly Decline in Over a Year

Published 08/20/2018, 10:45 AM
© Reuters.  Gold bounces after sharp weekly loss
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Investing.com - Gold prices traded higher on Monday, recovering some lost territory after suffering its largest weekly decline in more than year, as traders waited for references from the Federal Reserve later this week.

At 10:41 AM ET (14:41 GMT), gold futures for December delivery on the Comex division of the New York Mercantile Exchange gained $8.70, or 0.72%, to $1,192.90 a troy ounce.

Gold futures ended last week down 2.86%, the largest weekly decline since early May 2017, after hitting $1,176.20 last Thursday, the lowest level since early January 2017.

Gold prices are down around 10.8% so far this year, pressured lower by the stronger dollar and rising interest rates.

Market participants will be paying close attention to any signals from the Fed this week on the future path of monetary policy.

On Wednesday, investors will get the chance to parse through the minutes of the Federal Reserve’s August meeting, when it left interest rates unchanged and indicated that it remains on track for additional rate hikes this year.

On Friday, Jerome Powell is to make his first appearance as Fed chairman at the annual economic symposium in Jackson Hole.

Investors will be on the lookout for any tweaks to the Fed’s outlook on inflation, the economy and trade war fears.

Markets are currently expecting the next rate hike to occur in September, with odds of an additional increase in December hovering around 63%.

In other metals trading, silver futures rose 0.20% at $14.660 a troy ounce by 10:42 AM ET (14:42 GMT).

Palladium futures traded up 2.15% to $896.70 an ounce, while sister metal platinum advanced 1.92% at $792.20.

In base metals, copper gained 1.18% to $2.660 a pound.

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