Gold rises to highest in a month ahead of busy week
Investing.com
Published Jul 24, 2017 02:53AM ET
Gold rises to highest in a month at start of busy week
Investing.com - Gold prices rose to their highest level in around a month in European trade on Monday, as market players looked ahead to a busy week of economic events, including a Federal Reserve policy decision and U.S. second quarter growth data.
Comex gold futures touched its highest since June 26 at $1,257.41 a troy ounce in overnight trade. It was last at $1,253.21 by 2:50AM ET (0650GMT), down $1.60, or about 0.1%.
Prices logged a gain of more than 2% last week, as ongoing political turmoil in the White House and weakness in the U.S. dollar spurred haven demand for the precious metal.
In the coming week, global financial markets will focus on the outcome of Wednesday's Federal Reserve policy meeting for any new insight on the timing of the next U.S. rate hike and clues on how the central bank plans to pare back its massive balance sheet.
There are also several key U.S. economic reports, with the biggest being second quarter GDP due on Friday.
Besides the GDP report, this week's calendar also features U.S. data on both existing and new home sales, as well as consumer confidence, durable goods orders and weekly jobless claims.
According to Investing.com’s Fed Rate Monitor Tool, conviction for another rate hike before the end of the year has faded, with just 35% of market players expecting another move by December, as the subdued inflation outlook raised doubts over whether policymakers will be able to stick to their planned tightening path.
The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
Focus will also be on headlines coming out of Washington, where the Senate is expected to continue working to repeal Obamacare. The investigation into U.S. President Donald Trump campaign's ties to Russia will continue to get attention.
Elsewhere on the Comex, silver futures dipped 3.9 cents, or roughly 0.2%, to $16.41 a troy ounce, after hitting a three-week high of $16.51 earlier.
Among other precious metals, platinum was down 0.3% at $934.85, while palladium dipped 0.2% to $842.30 an ounce.
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Written By: Investing.com
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