Gold price edged higher on Monday, rebounding from the previous session’s steep fall, as investors are hopeful of further monetary policy action from the US Federal Reserve this week.
Spot gold climbed 0.4% to $1,690.90 per ounce by 11:30 a.m. EST, while US gold futures rose 1.0% to $1,698.20 per ounce in New York.
“The Fed will continue to have uber dovish policies, they will continue to suppress real rates and that’s the main driver for gold purchases over the last few months,” Daniel Ghali, commodity strategist at TD Securities, told Reuters, adding that the macro implications will continue to support the precious metal.
Bullion fell as much as 2.4% to $1,670.14 on Friday — its lowest in more than a month — as an unexpected surge in US employment numbers for the month of May raised hopes for a quick economic recovery and boosted investor appetite for riskier assets.
However, the uptick in gold could also be of technical nature, says Saxo Bank analyst Ole Hansen.
“The break below $1,700 on Friday is once again attracting some demand from investors, who have been waiting on the sidelines for a correction,” he added.
Investors now await the decisions to materialize from the US Central Bank’s policy meetings, set to take place Tuesday through Wednesday, which analysts believe may leave the door open for further stimulus.
Meanwhile, spot silver rose 0.8% to $17.56 an ounce, platinum advanced 2.2% to $837.10 and palladium jumped 3.4% to $2,023.50.
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