Gold gains on softer US dollar, Fed decision awaited
[BENGALURU] Gold prices edged higher on Monday (May 5), helped by a weaker US dollar, while investors awaited more clarity on trade policy between the US and its trading partners, and looked forward to the Federal Reserve's policy decision due later this week.
Spot gold gained 0.2 per cent to US$3,245.01 an ounce, as at 0031 GMT. US gold futures rose 0.3 per cent to US$3,252.00.
The US dollar was down 0.1 per cent against its rivals, making gold more attractive for other currency holders.
Last week, China's commerce ministry said the US has repeatedly expressed willingness to negotiate on tariffs and that Beijing's door is open for talks.
US President Donald Trump said he will not remove Jerome Powell as Fed board chairman before his term ends in May 2026 while describing the central banker as 'a total stiff' and repeating calls for the Fed to lower interest rates.
Traders trimmed bets on Friday that the Fed will cut rates as soon as in June after the US Labor Department reported employers added more jobs than expected in April and the unemployment rate was steady at 4.2 per cent, signs the job market remains in balance.
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The market's focus will on the US central bank policy decision and speeches by several Fed officials due this week, for insights into future monetary policy trajectory.
Non-yielding gold acts as a hedge against global uncertainty and inflation and tends to thrive in a low-interest-rate environment.
Chinese markets are closed for the Labour Day holiday from May 1 to 5 and will resume trade on Tuesday, May 6.
Spot silver rose 0.1 per cent to US$32.02 an ounce, platinum fell 0.5 per cent to US$954.88 and palladium eased 0.2 per cent to US$951.36. REUTERS
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