Gold futures on the COMEX division of the New York Mercantile Exchange closed higher Monday, amid weaker global stocks ahead of the U.S. Federal Reserve's key policy meeting starting Wednesday.
The most active gold contract for December delivery gained 4.4 U.S. dollars, or 0.4 percent, to settle at 1,107.70 dollars per ounce. The Federal Reserve will release its crucial policy statement Thursday afternoon at about 2 p.m. EDT, following a two-day, rate- setting meeting at which the Fed might raise its benchmark interest rate for the first time in more than nine years.
Analysts said that if there is no rate-hike decision from the U.S. central bank Thursday, this may undermine the dollar and boost gold market. A weaker U.S. dollar can be a positive for commodities including gold, priced in the U.S. dollar as it makes them cheaper for investors holding other currencies.
Gold also got some support from European and U.S. equities in decline Monday. For the day, silver for December delivery dropped 14.2 cents, or 0.98 percent, to close at 14.363 dollars per ounce. Platinum for October delivery lost 9.5 dollars, or 0.98 percent, to close at 955.4 dollars per ounce.
Latest comments