Gold rises on weaker dollar; investors await US jobs data
(Reuters) - Gold edged higher on Monday, supported by a weaker U.S. dollar, while investors hunkered down for U.S. economic data due later this week for signals on the Federal Reserve's policy path.
Spot gold rose 0.5% at $3,287.64 per ounce as of 1047 a.m. EDT (1447 GMT) after reaching its lowest point since May 29 earlier in the session. The yellow metal was up for the second straight quarter, rising 5.2%.
U.S. gold futures was up 0.4% at $3,299.40.
"A weaker dollar today is providing a bit of support. But we're still within the well-defined range that has dominated since the middle of May," said Peter Grant, vice president and senior metals strategist at Zaner Metals.
The dollar fell against the yen and hit its lowest in almost four years against the euro, as market optimism over U.S. trade deals bolstered bets for earlier interest rate cuts by the Federal Reserve.[USD/]
However, "Easing of geopolitical tensions and trade worries put some pressure on gold. So,it continues to coil within that range. I still think that we're going to see new all-time highs. $3,800 is a likely objective for the second half of the year," Grant added.
On the trade front, the U.S. and China resolved issues over rare earth minerals and magnet shipments last week, renewing hopes for further talks between the two superpowers. Elsewhere, Canada scrapped its digital services tax targeting U.S. tech firms late Sunday to revive stalled trade negotiations with the U.S.
Gold, traditionally considered a hedge during times of uncertainty, also thrives in a low-interest rate environment.
Investors now await the U.S. ADP employment data, due Wednesday, and Thursday's initial jobless claims data for hints on the central bank's potential policy path.
Spot silver was flat at $35.97 per ounce, while platinum eased 0.5% to $1,332.05, and palladium dropped 2.1% to $1,109.78. All the three-metals were headed for gains so far this quarter.
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The Hill
38 minutes ago
- The Hill
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Fox News
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Business Insider
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