Gold prices were firmed on Monday, supported by a lower dollar, while investors were waiting for more clarity on trade policy between the United States and their business partners and awaited the decision of the American federal reserve later scheduled for week.
The cash in cash gained 0.7 % at 3,261.59 dollars per ounce, at 02h17 GMT. US gold contracts increased 0.8 % to 3,269.60 dollars.
The dollar fell 0.3 % against its rivals, making gold more attractive for holders of other currencies.
“The US dollar seems moderate before the Fed meeting this week, which allows gold to experience a slight increase,” said Tim Waterer, chief market analyst at KCM Trade.
“Gold could continue to evolve in a range of 3,200 to 3,350 dollars before the Fed meeting. However, any new information concerning the trade agreement could lead to new volatility. »»
The market will be attentive to the monetary policy decision of the American central bank and to the speeches of several officials of the Fed scheduled for this week, in order to obtain indications on the future orientation of monetary policy.
Traders are now expecting a drop in rates of 80 basic points this year from July, after the publication of the US Labor Ministry reporting on Friday reporting a job creation greater than forecasts in April.
Gold, which does not report any yield, serves as a coverage against global uncertainty and inflation and tends to prosper in a low interest rate environment. US President Donald Trump said he would not have Jerome Powell from his post as president of the Fed before the end of his mandate in May 2026, while reiterating his Call to the Fed to lower her interest rates.
Trump said on Sunday that the United States was in talks with many countries, including China, about trade agreements, and that its main priority with China was to win a fair trade agreement.
The Chinese markets are closed for leave from May 1 to 5 and will resume their activities on Tuesday, May 6.
Signing silver increased by $ 31.99 per ounce, platinum fell 0.4 % to 956.09 dollars and palladium dropped by 0.1 % to 952.63 dollars. (Report of Anushree Mukherjee in Bengaluru; edited by Rashmi Aich and Janane Venkatraman)
