1 month ago
Commodities

Gold Price Gains, Dollar Weakens Amid Positive Trade Headlines

Investing.com - Gold future price gained while the U.S. dollar slipped on Monday in Asia amid more positive trade headlines

Investing.com - Gold future price gained while the U.S. dollar slipped on Monday in Asia amid more positive trade headlines that came out during the weekend.

Both the U.S. and China reported progress in trade negotiations last week, although President Donald Trump said Friday that the talks were “very complicated".

In futures trading, gold's benchmark April contract on the Comex division of the New York Mercantile Exchange was up 0.3% at $1,326.35 per ounce by 1:40 AM ET (06:40 GMT).

Gold future price settled at the highest level in two weeks on Friday, closing at $1,324.75.

Meanwhile, the greenback, which had been the preferred safe-haven since the beginning of the Sino-U.S. trade war, traded slightly lower on Monday amid rising hopes of a trade deal.

The U.S. dollar index that tracks the greenback against a basket of other currencies dropped 0.1% at 96.640.

The Federal Reserve will release minutes of its most recent policy meeting and might provide more hints on future rate hikes paths for the rest of 2019.

The U.S. central bank left interest rates on hold at the conclusion of its policy meeting on Jan. 30 and pledged to be patient with further interest rate hikes, dropping its guidance that ‘further gradual’ rate rises will be needed.

“Looser monetary policies are generally favourable to gold, which has benefited since the Fed paused its tightening path,” said Nicholas Frappell, global general manager at ABC Bullion, in a Business Day report.

“The market will be looking closely at US and China data and I think gold will target a retest of the $1,326 level again,” Frappell added.

Speeches from a number of Fed officials, including New York Fed President John Williams (NYSE:WMB) and St. Louis Fed head James Bullard, are also expected to receive some attention later this week.