Investing.com - Gold futures kicked off the week with strong gains on Monday, after former U.S. Treasury secretary Larry Summers withdrew himself from consideration to be the next Federal Reserve chairman.
Traders now turned their attention to this week's U.S. monetary policy decision on Wednesday.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,325.70 a troy ounce during European morning hours, up 1.3%.
Gold prices rose by as much as 1.9% earlier in the day to hit a session high of USD1,334.60 a troy ounce. The December contract ended 1.65% lower on Friday to settle at USD1,308.60 a troy ounce.
Gold futures were likely to find support at USD1,304.80 a troy ounce, Friday’s low and resistance at USD1,365.70, the high from September 12.
The U.S. dollar tumbled against its major counterparts after Summers pulled out of the race to be the next Fed chairman, easing investor concerns that he would roll back economic stimulus measures more aggressively than his main rival for the post, current Fed Vice Chairwoman Janet Yellen.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.5% to hit 81.25, the lowest level since August 28.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Meanwhile, investors shifted their focus to the Fed’s upcoming two-day policy meeting, which concludes on Wednesday, amid ongoing speculation over the timing of the central bank’s widely expected reduction in monthly bond purchases.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its quantitative easing program sooner-than-expected.
The precious metal is on track to post a loss of nearly 21% on the year as traders bet an improving U.S. economy would lead the Fed to unwind its stimulus program by the year's end.
Elsewhere on the Comex, silver for December delivery rallied 1.3% to trade at USD21.99 a troy ounce, while copper for December delivery advanced 0.4% to trade at USD3.216 a pound.
Traders now turned their attention to this week's U.S. monetary policy decision on Wednesday.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,325.70 a troy ounce during European morning hours, up 1.3%.
Gold prices rose by as much as 1.9% earlier in the day to hit a session high of USD1,334.60 a troy ounce. The December contract ended 1.65% lower on Friday to settle at USD1,308.60 a troy ounce.
Gold futures were likely to find support at USD1,304.80 a troy ounce, Friday’s low and resistance at USD1,365.70, the high from September 12.
The U.S. dollar tumbled against its major counterparts after Summers pulled out of the race to be the next Fed chairman, easing investor concerns that he would roll back economic stimulus measures more aggressively than his main rival for the post, current Fed Vice Chairwoman Janet Yellen.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.5% to hit 81.25, the lowest level since August 28.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Meanwhile, investors shifted their focus to the Fed’s upcoming two-day policy meeting, which concludes on Wednesday, amid ongoing speculation over the timing of the central bank’s widely expected reduction in monthly bond purchases.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its quantitative easing program sooner-than-expected.
The precious metal is on track to post a loss of nearly 21% on the year as traders bet an improving U.S. economy would lead the Fed to unwind its stimulus program by the year's end.
Elsewhere on the Comex, silver for December delivery rallied 1.3% to trade at USD21.99 a troy ounce, while copper for December delivery advanced 0.4% to trade at USD3.216 a pound.