Gold prices edged higher on Monday,
supported by a weaker dollar, as investors assessed some risk of
aggressive rate hikes expected this week by major central banks
especially the U.S. Federal Reserve to tame inflation.
* Spot gold was up 0.2% at $1,677.89 per ounce, as of
0022 GMT. U.S. gold futures rose 0.2% at $1,686.50.
* The dollar index was down 0.2%, making bullion less
expensive for overseas buyers.
* The U.S. Fed’s Federal Open Market Committee is expected
to begin its two-day meeting on interest rates on Sept. 20 and
announce its decision the following day.
* Most of the banks meeting this week – from Switzerland to
South Africa – are expected to hike, with markets split on
whether the Bank of England will go by 50 or 75 basis points.
* Meanwhile, U.S. consumers’ near-term inflation
expectations fell to a one-year low in September, easing fears
that the Fed could raise interest rates by a full percentage
point next week.
* Gold is known as a safe investment amid inflation woes,
but high interest rates increase the opportunity cost of holding
* Physical gold demand picked up in India as domestic prices
fell ahead of key festivals, while premiums in China climbed
further as its currency weakened.
* Holdings of SPDR Gold Trust , the world’s largest
gold-backed exchange-traded fund, fell 0.1% to 960.85 tonnes on
Friday from 962.01 tonnes on Thursday.
* Speculators switch to net short position of 10,132
contracts in week to Sept. 13 in COMEX gold , while trimmed net
short position in COMEX silver, the U.S. Commodity Futures
Trading Commission (CFTC) said on Friday.
* Spot silver gained 0.2% to $19.59 per ounce.
Platinum fell 0.1% to $906.15 and palladium was
down 0.2% at $2,129.55.
No major data/events expected on Monday, Sept. 19
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by