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Gold starts busy week on upbeat note

Published 07/24/2017, 08:40 AM
© Reuters.  Gold hits 1-month high at start of busy week
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Investing.com - Gold prices rose to their highest level in around a month in North American trade on Monday, ahead of a busy week of economic events, including a Federal Reserve policy decision and U.S. second quarter growth data.

In recent trading, Comex gold was at $1,258.03 a troy ounce by 8:40AM ET (1240GMT), up $3.20, or around 0.3%. It touched its highest since June 26 at $1,258.60 earlier in the session.

Futures notched their sixth gain in a row on Friday, matching the streak of wins logged through May 17.

Prices of the yellow metal logged a gain of more than 2% last week, as ongoing political turmoil in the White House and weakness in the U.S. dollar spurred haven demand for the precious metal.

In the coming week, global financial markets will focus on the outcome of Wednesday's Federal Reserve policy meeting for any new insight on the timing of the next U.S. rate hike and clues on how the central bank plans to pare back its massive balance sheet.

There are also several key U.S. economic reports, with the biggest being second quarter GDP due on Friday.

Besides the GDP report, this week's calendar also features U.S. data on both existing and new home sales, as well as consumer confidence, durable goods orders and weekly jobless claims.

According to Investing.com’s Fed Rate Monitor Tool, conviction for another rate hike before the end of the year has faded, with just 35% of market players expecting another move by December, as the subdued inflation outlook raised doubts over whether policymakers will be able to stick to their planned tightening path.

The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.

Focus will also be on headlines coming out of Washington, where the Senate is expected to continue working to repeal Obamacare. The investigation into U.S. President Donald Trump campaign's ties to Russia will continue to get attention.

Elsewhere on the Comex, silver futures climbed 10.3 cents, or roughly 0.6%, to a more than three-week high of $16.56 a troy ounce.

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