Yahoo Finance Gold Prices Inch Lower As Investors Expect Fed To Raise Rate
Investing.com – Gold prices edged lower on Monday as the dollar stayed firm ahead of the Fed meeting later this week.
Gold futures for April delivery on the Comex division of the New York Mercantile Exchange slipped $1.1, or 0.08%, to $1,311.50 a troy ounce by 12:19am ET (04:30GMT).
The U.S. dollar index that tracks the greenback against a basket of six major currencies last stood at 89.90, up 0.11%. The dollar index was traded as high as at 90.37 last Friday.
A stronger dollar makes bullion, which is used as an alternative investment during times of political and financial uncertainty, more expensive for holders of other currencies.
Gold is also highly sensitive to rising US interest rates. The precious metal becomes less attractive to investors as it does not bear interest.
Investors are expecting the U.S. Federal Reserve to deliver a rate hike for the first time this year at this week’s policy meeting, a potential signal that as many as three more might be in store for the rest of the year.
Meanwhile, Asian equities were mixed in morning trade on Monday. Personnel changes in China’s government and the People’s Bank of China (PBOC) gathered attention as Yi Gang, a vice governor of the PBOC, has been nominated to replace Zhou Xiaochuan as the head of the Chinese central bank, according to parliament delegates.
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