As the Dollar Declines, Gold Rises as Investors Anticipate US Job Statistics
As investors braced for US economic data later this week for clues about the Federal Reserve’s policy direction, gold somewhat increased on Monday thanks to a declining U.S. dollar. At 1047 a.m. EDT (1447 GMT), spot gold was up 0.5% at $3,287.64 an ounce after sinking to its lowest level since May 29 earlier in the day.
For the second consecutive quarter, the yellow metal had a 5.2% increase. Gold futures in the US were up 0.4% at $3,299.40. Today’s declining value of the dollar is offering some assistance. Peter Grant, senior metals strategist and vice president of Zaner Metals, stated, “But we’re still within the well-defined range that has dominated since the middle of May.
As market confidence about U.S. trade agreements supported wagers for quicker Federal Reserve interest rate reduction, the dollar dropped versus the yen and reached its lowest level against the euro in over four years.
But the reduction of trade concerns and geopolitical tensions placed some pressure on gold. It keeps coiling in that range, then. I continue to believe that we will reach new all-time highs. The anticipated goal for the second part of the year is $3,800,” Grant continued.
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