Gold was found trading with an increase in its prices early in today’s session as the Asian Stocks fell and the dollar eased ahead of the U.S. Federal Reserve policy meeting that might shed some light on the pace of interest rate hike over the rest of the year.
The FEDs is widely expected to raise the interest rates at its two-day meeting which ends on Wednesday, The focus of the meeting will be on any hints on the pace of further tightening in the coming months and throughout next year, which would lead to any further details on its plans for trimming its balance sheet.
Higher interest rates usually push the dollar and bond yields, putting pressure on gold prices by increasing the opportunity cost of holding non-yielding bullion.
Spot Gold was up by 0.1 percent at $1,267.49 per ounce after slipping 1 percent in its biggest one day percentage down since May 18 in the previous session. U.S. gold futures for august delivery fell by 0.2 percent to $1,269.50.
In the bigger markets, Asian Stocks skidded lower in early trade on Monday following a slide by U.S. Technology shares.
The dollar index was seen trading lower by 0.1 percent against other major currencies to 97.176 following its rise to a nine-day high of 97.500 on Friday.