Gold prices edged lower on Monday, with investors waiting to hear from Federal Reserve Chairman Jerome Powell on Wednesday when the central bank’s two-day July policy meeting concludes.
Price action
-
Gold futures for August delivery
GC00,
-0.23% GCQ23,
-0.23%
were down $2, or 0.1%, at $1,964.60 an ounce on Comex. -
Silver futures for September delivery
SI00,
-1.01% SIU23,
-1.01%
were off by 25.5 cents, or 1.3%, at $24.60 an ounce. -
October platinum
PLV23,
+0.09%
traded at $964.60 per ounce, down $7.60, or 0.8%, while September palladium
PAU23,
+0.19%
declined by $5.50, or 0.4%, to $1,281 per ounce. -
September copper
HGU23,
+0.85%
declined by less than a penny, or 0.1%, to $3.821 per pound.
Price action
Gold prices have climbed month to date after the July CPI report released midmonth showed price pressures ebbing more quickly than expected last month.
Assuming the Fed follows through with a widely-expected interest-rate hike on Wednesday, investors will be watching closely for signs of how this latest data point is impacting the central bank’s plans going forward. Expectations that the July hike might be the final one for the cycle have helped to boost gold prices, while causing the U.S. dollar
DXY,
to weaken for the month so far.
The Federal Open Market Committee meeting this week will be the “direction setter for the gold price, with the level of perceived dovishness or otherwise from the Fed likely to have a big say in whether the precious metal makes another run” towards the $2,000 level anytime soon, said Tim Waterer, chief market analyst at KCM Trade, in market commentary.
Read: Everyone thinks the Fed’s rate hike this week will be the final one — except the Fed
Gold futures continued to trade lower after the release of S&P surveys Monday showing the U.S. economy grew in July at the slowest pace in five months.
The S&P Flash U.S. services-sector index fell to 52.4 from 54.4 in the prior month. That’s the lowest reading since March. The S&P U.S. manufacturing sector index, meanwhile, rose to 49.0 from 46.3, but it’s been negative for months.
Looking ahead, the Fed isn’t the only central bank meeting this week: the European Central Bank and Bank of Japan also have policy meetings on the calendar that could impact global markets.
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