Gold inched up as markets focus on dollar and upcoming Fed news

Gold remains solid

The price of gold touches it one-month high on Monday’s session as it was strengthened by a much weaker U.S. dollar. The on-going political uncertainties in the stateside along with the anticipated monetary news from the U.S. Federal Reserve also influenced the demand.

Conspiracies surrounding the campaign of President Trump on to the investigations to the alleged interference of Russia in last year’s presidential election are perceived to be a hindrance to administration’s plan to strengthen the economic health of the United States. Political uncertainties like this are not good for their currency because it weakens the possibility of an interest rate hike in the U.S.

Sergey Raevskiy, an analyst from SP Angel, said the greenback and verdict on lifting rates will be the factors that will move the commodity market this week along with the bullion’s reaction to political turmoil’s.

Looking on prices, U.S. gold futures finished at $1,254.30 per ounce for its August delivery and spot gold inched higher by 0.05 percent settle at $1,255.02 per ounce. On the previous trade, spot notched a 4-week high of $1,257.18 per ounce it rose as much as 2.1 percent last week.

Gold prices will benefit from a weaker U.S. dollar because it will make the bullion cheaper for holders outside the U.S. This will then increase the yellow metal’s demand. The recent drop of the greenback gave the yellow metal a lift as much as 2 percent on the previous week. Investors are currently anticipating the two-day meeting from the U.S. Federal Reserve that will start on Tuesday.

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