WASHINGTON (dpa-AFX) - Gold futures settled higher on Monday, gaining for a second straight session, as the dollar stayed quite subdued.
The dollar index, which dropped to a low of 103.14, recovered to 103.50 around late morning, but retreated to 103.30 as the day progressed, recording a marginal loss.
Gold futures for December ended higher by $6.50 at $1,923.00 an ounce.
Silver futures for September ended up $0.607 at $23.340 an ounce, while Copper futures for September settled at $3.7185 per pound, gaining $0.0125.
Fears over monetary policy however linger ahead of the central bankers meeting at Jackson Hole, Wyoming, later in the week. Minutes of the FOMC released a few days earlier had shown the Fed to be persistent in its focus on inflation combat.
The CME FedWatch tool currently shows a probability of 11.5% for a rate hike of 25 basis points in the review due on September 20. The probability for a quarter-point rate hike in November is however higher at 35.5%.
The People's Bank of China today lowered its one-year loan prime rate by 10 basis points to 3.45%, and lef the five-year loan prime rate unchanged at 4.2%.
'It was supposed to be a quiet start to the week for gold with China coming to the rescue and some calm before Friday's Jackson Hole speech by Fed Chair Powell. There is a little bit of nervousness from the long-term bulls as gold futures are getting dangerously close to the $1900 level, which could trigger a wave of technical selling,' says Edward Moya, Senior Market Analyst at OANDA.
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