Gold Prices Edge Down as U.S. Dollar Steadies Ahead of Fed Officials Remarks By Investing.com


© Reuters.

Investing.com – Gold prices edged down on Monday in Asia, weighed down by a rising U.S. dollar as traders awaited comments from a number of Federal Reserve officials this week, which may reinforce expectations for a pause in its rate hike cycle.

Fed Chairman Jerome Powell, Cleveland Fed President Loretta Mester and St Louis Fed President James Bullard are due to speak later this week.

In its January meeting, the U.S. central bank halted its plans for further rate hikes, adding that it would be “patient” on raising rates amid muted inflation and rising risks to global economic growth.

Gold tends to appreciate on expectations of lower interest rates, which reduce the opportunity cost of holding non-yielding bullion.

last traded at $1,317.45 on the Comex division of the New York Mercantile Exchange by 12:16 AM ET (05:16 GMT), down 0.4%.

The safe-haven metal slid on Friday after hitting a nine-month peak in the previous session, but still posted a second straight weekly gain of 1.4%.

Meanwhile, the that tracks the greenback against a basket of other currencies gained 0.2% to 95.430.

The price of gold tends to fall when the value of the dollar increases, as the precious metal becomes more expensive in other currencies.

Trading volume in the Asian markets will be thin this week, with China’s financial markets closed the whole week for the Lunar New Year Holiday.

South Korea’s is also closed today for a holiday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Leave a Reply

Your email address will not be published. Required fields are marked *