Spot gold was up 0.3 percent at $1,288.14 per ounce as of 1:41 p.m EST (1841 GMT), having reached $1,298.42 an ounce on Friday, its highest since June 15.
U.S. gold futures settled up 0.3 percent at $1,289.9 per ounce.
· “The market is reconsidering its expectations for Fed rate hikes and as the expectations have been scaled back gold prices have been able to edge higher,” said Suki Cooper, precious metals analyst at Standard Chartered Bank.
The dollar slipped following dovish comments from Fed Chairman Jerome Powell, making gold cheaper for holders of other currencies.
Powell on Friday said the U.S. central bank would be more sensitive to downside risks in the market, adding that it was “prepared to shift the stance of policy” if needed.
“As the trade tensions have eased we’ve seen the dollar weaken somewhat and in turn gold prices have been able to benefit,” Cooper said.
The United States and China are likely to reach a good settlement over immediate trade issues, U.S. Secretary of Commerce Wilbur Ross said on Monday.
· “The main trend remains bullish (for gold). From a technical point of view, traders are now watching the two key levels of $1,277and $1,300, which are new support and resistance levels respectively,” ActivTrades chief analyst Carlo Alberto De Casa said in a note.
· Palladium hit an all-time high as the market suffers from a sustained deficit due to high demand and a supply shortage. The metal, used mainly in emissions-reducing catalysts for vehicles, was trading at a premium to gold.
Palladium, meanwhile, slipped 0.3 percent to $1,297.49 an ounce after touching a record high of $1,313.24 earlier in the session.
Silver edged 0.1 percent lower to $15.68 per ounce, while platinum was little changed at $822.30, having touched a more than one-month high of $831.10 earlier in the session.
Reference: CNBC
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