Gold prices were steady on Monday, with the dollar subdued after comments from Federal Reserve officials showing caution over the global economy, prompting traders to reassess the pace of future U.S. interest rate hikes.
Spot gold was little changed at $1,220.70 per ounce at 0417 GMT, having gained about 0.7 percent in the previous session.
U.S. gold futures were down 0.1 percent at $1,222.3 per ounce.
The possibility that the Fed might hold a neutral outlook beyond 2018, and a slowdown in the global economy amid the ongoing U.S.-China trade spat will keep investors a little more interested in gold's safe haven appeal, said Benjamin Lu, a commodities analyst with Phillip Futures.
Fed policymakers on Friday signalled further interest rate increases ahead, even as they raised relatively muted concerns over a potential global slowdown, leading markets to suspect the tightening cycle may not have much further to run.
A fourth rate hike for this year is expected next month and policymakers had earlier indicated two more by June 2019.
"For December the rate hike is already priced in and it's most likely going to happen," Lu said.
"What people will be watching out for is any decline in economic indicators that could result in a softening of the dollar (that would) help gold gain," he said.
Prospects of higher U.S. interest rates are negative for dollar-priced gold as they raise the opportunity cost of holding the bullion.
Stock Market Tips and recommendations Follow Market captains .
Comments
Post a Comment