Gold rises on dollar’s slide, traders watch for economic signs

The gold price rose on monday as the dollar weakened as investors awaited more economic data that could determine the pace of interest rate hikes from the US Federal Reserve.

Spot gold was up 0.3% at $1,771.04 per ounce by 1058 GMT. US gold futures were up 0.4% at $1,789.10.

The dollar index fell 0.4%, making gold less expensive for foreign investors.

The dollar’s weakness should support gold’s gains, said Han Tan, chief market analyst at Exinity.

Gold rose 2.2% last week, its best performance since March, after Federal Reserve Chairman Jerome Powell struck a relatively less aggressive tone after the expected rate hike of 75 basis points.

“(However) bullion bulls are waiting to see if the coast is clear for another leg to the upside, ensuring that expectations of a less aggressive Fed are indeed rooted in reality,” Tan said, adding, “ As with the Fed, gold’s next move may depend on the data.”

The monthly US employment report, to be released on Friday, will also be closely watched for its likely influence on the Federal Reserve’s rate hike plans.

Gold, a safe haven, has also found some support in recent weak economic data, such as the unexpected contraction of the US economy in the second quarter and the slowdown in manufacturing activity in the euro zone.

Among other precious metals, spot silver rose 0.4% to $20.40, platinum gained 0.8% to $904.42, while palladium added 1.6% to $2,161.97. .

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