- Gold prices inched higher during early trading on Monday, benefiting from a weakened dollar.
- The dollar index was up by 0.04% at 92.78 as of 11:11am Shanghai time, however the index remains near the two-month low of 92.67 reached on Friday.
- The dollar has been under pressure since the US Federal Open Market Committee’s (FOMC) November meeting minutes were released last week.
- The minutes suggested that some committee members were concerned about low inflation - which the market interpreted as a possible reduction in the number of US interest rate rises scheduled for next year.
- “Gold in the bigger picture continues to consolidate near to the top of its two-month trading range as it benefits from an unloved US dollar,” Jeffrey Halley, senior market analyst at Oanda, said on Monday.
- “Gold though continues to struggle to make upward progress from its current level at $1,290, with a double top at $1,295 and last week’s high at $1,290 both forming strong short-term barriers. One expects that for gold to sustain a break above $1,300, we will have to see another significant leg down in the US dollar,” Halley added.
- In the other precious metals, the spot silver price was up by $0.04 to $17,045-17.065 per oz. Platinum dipped $1 to $937-942 per oz and palladium gained $2 to $995-1,000 per oz.
- On the Shanghai Futures Exchange, gold for June delivery was recently at 280.25 yuan ($42.62) per gram, and the June silver was at 3,985 yuan per kg.
Currency moves and data releases
- The dollar index was up by 0.04% at 92.78 as of 11:11am Shanghai time.
- In other commodities, the Brent crude oil spot price rose by 0.08% to $63.77 per barrel while the Texas light sweet crude oil spot price was down by 0.47% to $58.67.
- In equities, the Shanghai Composite was down by 0.63% to 3,332.65
- Today’s economic agenda is light with mainly China’s industrial profits and new homes sales from the United States of note.
- In addition, FOMC members Neel Kashkari and William Dudley are speaking.