By 2 Minutes Read* The majority of U.S. markets were closed on Monday* The Federal Reserve’s minutes are due on Wednesday (Recasts, adds comment, updates prices) Reuters, July 5 – Gold prices edged up on Monday, as a weaker dollar and lower bond yields, combined with a mixed bag of US labor statistics, allayed investor concerns about a speedier rate hike, allowing the metal to reclaim the $1,800 level. By 0838 GMT, spot gold was up 0.2 percent to $1,790.50 per ounce, having achieved its highest level since June 18 at $1,794.86 on Friday. For the Fourth of July holiday, most U.S. markets were closed on Monday. According to Saxo Bank analyst Ole Hansen, the dollar has lost some of its recent strength, and gold is “now hanging on to some of Friday’s gains, once again challenging resistance ahead of $1,800.” Meanwhile, Friday’s “not so hot” jobs report “has further decreased the risk of any FOMC action occurring sooner… leaving gold some upside potential,” Hansen noted. According to data released on Friday, U.S. businesses employed the most people in ten months in June, while unemployment rose, labor participation remained unchanged, and the rate of hourly wage growth slowed. The minutes of the Fed’s most recent meeting, which are expected to be released on Wednesday, may offer more light on policymakers’ views on inflation and monetary policy. “The impact of the Fed’s recent hawkishness have began to wear off, with a number of Fed officials calming markets,” said Avtar Sandu, senior commodities manager at Phillip Futures, in a note. According to him, gold’s immediate resistance is at $1,800 per ounce, while support is at $1,750. Silver increased by 0.3 percent to $26.55 per ounce, platinum increased by 0.8 percent to $1,098.94, and palladium increased by 0.3 percent to $2,793.44. (Arundhati Sarkar in Bengaluru contributed reporting; Peter Graff edited the piece.)/n
Read More
