Gold prices showed little change on Monday as a busy week for markets kicked off. Investors are eagerly waiting to hear from Federal Reserve Chairman Jerome Powell on Wednesday, as the central bank’s July policy meeting comes to a close.
- Gold futures for August delivery (GC00, +0.09% GCQ23, +0.09%) were up 70 cents at $1,967 per ounce on Comex.
- Silver futures for September delivery (SI00, -0.06% SIU23, -0.06%) declined by 4 cents, or 0.2%, to $24.67.
- October platinum (PLV23, +0.33%) remained relatively unchanged at $972 per ounce.
- September palladium (PAU23, +0.47%) dropped by $4, or 0.3%, to $1,282.50 per ounce.
- September copper (HGU23, +0.26%) fell by 2 cents, or 0.4%, to $3.80 per pound, posting a weekly decline of 2.9%.
Over the past two weeks, gold prices have been on the rise since the July CPI report indicated that price pressures were easing more rapidly than expected last month.
If the Fed proceeds with the widely-anticipated interest-rate hike on Wednesday, investors will closely monitor any indications of how this latest data point will influence the central bank’s future plans. The expectation that the July hike may be the last for this cycle has helped bolster gold prices while weakening the U.S. dollar (DXY, +0.06%).
It’s worth noting that the Fed is not the only central bank holding a meeting this week. The European Central Bank and Bank of Japan also have policy meetings scheduled that could impact global markets.
“In general, the outlook for gold prices remains positive. Investors are once again adopting a wait-and-see approach,” noted Rupert Rowling, market analyst for Kinesis Money.