Gold prices were higher during Europe's session on Monday, bouncing off a more than two-week low as investors looked ahead to this week's highly anticipated Federal Reserve policy meeting.
Gold for December delivery on the Comex division of the New York Mercantile Exchange tacked on $9.85, or 0.75%, to trade at $1,320.05 a troy ounce by 3:59AM ET (07:59GMT). On Friday, prices slumped to $1,309.20, the lowest since September 1.
The Federal Reserve is not expected to take action on interest rates at the conclusion of its two-day policy meeting at 2:00PM ET (18:00GMT) on Wednesday. The central bank will also release its latest forecasts for economic growth and interest rates.
Fed Chair Janet Yellen is to hold what will be a closely-watched press conference 30 minutes after the release of the Fed's statement, as investors look for any change in tone about the economy or future rate hikes.
Speculation about the timing of the Fed's next interest rate hike has been in focus this month following contrasting comments from top Fed officials in recent weeks.
Markets are currently pricing in just a 15% chance of a rate hike this week, according to Investing.com's Fed Rate Monitor Tool. For December, odds stood at around 54%.
The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 95.85 early Monday, down 0.2%.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
The market is also waiting for the outcome of a Bank of Japan policy meeting, which also meets on September 20-21, for trading cues.
Elsewhere on the Comex, silver futures for December delivery jumped 33.1 cents, or 1.75%, to trade at $19.18 a troy ounce during morning hours in London, while copper futures eased down 0.8 cents, or 0.37%, to $2.152 a pound.
Gold for December delivery on the Comex division of the New York Mercantile Exchange tacked on $9.85, or 0.75%, to trade at $1,320.05 a troy ounce by 3:59AM ET (07:59GMT). On Friday, prices slumped to $1,309.20, the lowest since September 1.
The Federal Reserve is not expected to take action on interest rates at the conclusion of its two-day policy meeting at 2:00PM ET (18:00GMT) on Wednesday. The central bank will also release its latest forecasts for economic growth and interest rates.
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Fed Chair Janet Yellen is to hold what will be a closely-watched press conference 30 minutes after the release of the Fed's statement, as investors look for any change in tone about the economy or future rate hikes.
Speculation about the timing of the Fed's next interest rate hike has been in focus this month following contrasting comments from top Fed officials in recent weeks.
Markets are currently pricing in just a 15% chance of a rate hike this week, according to Investing.com's Fed Rate Monitor Tool. For December, odds stood at around 54%.
The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 95.85 early Monday, down 0.2%.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
The market is also waiting for the outcome of a Bank of Japan policy meeting, which also meets on September 20-21, for trading cues.
Elsewhere on the Comex, silver futures for December delivery jumped 33.1 cents, or 1.75%, to trade at $19.18 a troy ounce during morning hours in London, while copper futures eased down 0.8 cents, or 0.37%, to $2.152 a pound.
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