A weaker US dollar and anticipation of U.S Federal Reserve Chair Jerome Powell’s speech later this week, which may provide hints on the direction of monetary policy, sent gold prices to a more than one-week high on Monday. spot Gold was flat at $1,755.38 per ounce, having earlier in the session reached its highest level since November 18. The price of US gold futures increased 0.1% to $1,755 per ounce.
According to independent analyst Ross Norman, “the dollar turning a little bit lower is helping gold prices now.” Norman added that the gold market would benefit if Chinese protests against strict COvid curbs quickly gained momentum. Due to the decline of the dollar against its competitors by 0.8%, gold became more affordable for holders of other currencies.
Fed’s Powell is scheduled to talk on Wednesday at a Brookings Institution discussion about the prospects for the U.S economy and the labor market. Additionally, the November nonfarm payroll figures from the U.S Labor Department, which are due on Friday, might shed more light on the Fed’s rate-hike trajectory. The opportunity cost of storing the non-yielding metal rises as interest rates rise.
Wednesday’s Brookings Institution event on the future of the U.S economy and labor market will feature remarks from Fed’s Powell. Additionally, the U.S Labor Department’s November nonfarm payroll numbers, which are due on Friday, could provide more insight into the Fed’s trajectory of rate hikes. As interest rates increase, the opportunity cost of holding the non-yielding metal increases.