Gold was little changed on Monday, as the impact of a stronger dollar ahead of a Federal Reserve policy meeting was offset by persistent uncertainty around Greece after debt talks with its creditors stalled.
Spot gold was unchanged at $1,180.90 an ounce by 1143 GMT, while U.S. gold futures for August delivery were up $1.40 an ounce at $1,180.40.
The dollar rose 0.3 percent against a basket of major currencies, making dollar-denominated gold more expensive for holders of other currencies.
Investors hoped the Federal Reserve could offer a clear signal on the timing of its first interest rate hike in nearly a decade during its June 16-17 policy meeting.
“Yellen can now be a bit more optimistic about growth, maybe she will intimate that the path is being prepared for a rate rise (by year-end),” Societe Generale analyst Robin Bhar said.
A rate hike could boost the dollar further, in turn diminishing demand for non-interest-paying gold.
via Reuters
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.