While investors await more details on trade talks between the US and China, as well as the results of the Federal Reserve meeting, gold prices have risen by more than 1%.
UNN reports with reference to Reuters and Boursorama.
Details
On Monday, gold prices rose:
- spot gold rose 1.8% to $3,298.09
- US gold futures rose nearly 2% to $3,306.50.
According to Reuters, investors are eagerly awaiting more details on trade talks between the US and China. There are also hopes for the results of the Federal Reserve's policy meeting - the relevant discussion will take place this week.
Comment
The US dollar is slowing down, which is positive for gold. More and more investors are betting that the Fed will cut rates relatively soon after US GDP data last week came in lower than expected, and now, given what's happening with oil
Reference
The Fed is expected to keep rates unchanged for the third consecutive time at its May meeting, despite growing political pressure to cut them.
This refers to the target range of the Fed funds at 4.25%-4.50%.
The Trump administration's trade policy has put the Fed in a difficult position and created a high degree of political uncertainty for financial markets, households and businesses.
Addition
Recent comments by Fed Chairman Powell suggest that the Fed will "remain on hold" in the near future - even though President Trump is pushing for an immediate rate cut.
The Federal Agency for the performance of the functions of the central bank will assess the impact of tariffs on economic activity.
Meanwhile, the US economy is likely to face a combination of weakening growth and rising inflation, analysts suggest.
Recall
Spot gold fell nearly 2% to $3222.66 an ounce, reaching a two-week low. The reason was signs of easing trade tensions and a stronger dollar.