Investing.com - Gold prices rose on Monday on hopes central banks around the world will loosen already very loose monetary policies if the global economy fails to pick up.
The Federal Reserve announced last week it was making no changes to its benchmark interest rates and added monetary policy will likely stay loose for some time to come.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were up 0.18% at USD1,715.05 a troy ounce, up from a session low of USD1,714.45 and down from a high of USD1,716.55 a troy ounce.
Gold futures were likely to test support at USD1,701.45 a troy ounce, Friday's low, and resistance at USD1,719.35, Fridays' high.
In the U.S., the Federal Reserve announced earlier that it left interest rates near zero and monetary policy unchanged, pointing out that elevated unemployment rates and headwinds from abroad merit ongoing asset purchases from banks, a monetary policy tool known as quantitative easing that weakens the dollar, gold's traditional hedge.
The U.S. central bank emphasized it will continue intervening until the economy and labor market improve.
"If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability," the Fed said in a statement.
Investors took their time digesting the report and concluded the decision will keep the dollar weak for some time to come.
Other paper currencies should remain weak as well, including the yen, as market talk has begun to build that the Bank of Japan will move to stimulate its economy as well.
The European Central Bank and the People's Bank of China have said they might roll out measures in varying degrees of intensity to prop up their respective economies, which would likely weaken paper currencies, a recipe for rising gold prices.
Elsewhere on the Comex, silver for December delivery was up 0.29% and trading at USD32.130 a troy ounce, while copper for December delivery was down 0.13% and trading at USD3.554 a pound.
The Federal Reserve announced last week it was making no changes to its benchmark interest rates and added monetary policy will likely stay loose for some time to come.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were up 0.18% at USD1,715.05 a troy ounce, up from a session low of USD1,714.45 and down from a high of USD1,716.55 a troy ounce.
Gold futures were likely to test support at USD1,701.45 a troy ounce, Friday's low, and resistance at USD1,719.35, Fridays' high.
In the U.S., the Federal Reserve announced earlier that it left interest rates near zero and monetary policy unchanged, pointing out that elevated unemployment rates and headwinds from abroad merit ongoing asset purchases from banks, a monetary policy tool known as quantitative easing that weakens the dollar, gold's traditional hedge.
The U.S. central bank emphasized it will continue intervening until the economy and labor market improve.
"If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability," the Fed said in a statement.
Investors took their time digesting the report and concluded the decision will keep the dollar weak for some time to come.
Other paper currencies should remain weak as well, including the yen, as market talk has begun to build that the Bank of Japan will move to stimulate its economy as well.
The European Central Bank and the People's Bank of China have said they might roll out measures in varying degrees of intensity to prop up their respective economies, which would likely weaken paper currencies, a recipe for rising gold prices.
Elsewhere on the Comex, silver for December delivery was up 0.29% and trading at USD32.130 a troy ounce, while copper for December delivery was down 0.13% and trading at USD3.554 a pound.