WASHINGTON (dpa-AFX) - Gold prices traded near record levels on Monday, driven by a weaker dollar and bets of a more aggressive rate reduction by the U.S. Federal Reserve at its upcoming policy meeting this week.
Spot gold rose 0.3 percent to $2,585.19 per ounce, while U.S. gold futures were marginally higher at $2,612.45.
Markets braced for a slew of central bank meetings this week.
The U.S. Federal Reserve is all set to announce its first interest rate cut for more than four years on Wednesday, but the size of cut is shaping up to be a close call.
On Friday, former New York Fed President Bill Dudley said that there was a strong case for a 50-basis point reduction.
He said rates are currently 150-200 basis points above the so-called neutral rate for the U.S. economy, where policy is neither restrictive nor accommodative.
The Bank of England is expected to leave rates on hold at 5.00 percent on Thursday and investors would be watching for a decision over the pace of its bond sales.
The Bank of Japan meets on Friday and is widely expected to hold rates steady, but a majority of economists still expect an increase by year-end.
Elsewhere, South Africa's central bank may ease its policy this week, while Norway is seen holding steady. Rate decisions are also due in Brazil and Turkey.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
