Gold futures recovered on Monday as negotiations between Greece and its international creditors kept going and investors awaited the outcome of this week’s meeting of the US central bank's policy makers.
Gold for June delivery on Comex rose $10, or 0.9%, to $1,185 an ounce, while May silver rose 16.9 cents, or 1.1%, to $15.805 an ounce. Last week gold fell 2.2%, ending Friday at its lowest level in five weeks.
July platinum rose $7.50, or 0.7%, to $1,128.90 an ounce, while June palladium advanced $5.85, or 0.8%, to $776.10 an ounce.
May copper rose 0.8 cent, or 0.3%, to $2.757 a pound.
Market players are anticipating the statement following the conclusion
of a two-day meeting of Federal Reserve policy makers on Wednesday,
looking for any hints the central bank is becoming less likely to raise
interest rates this year.
Investors already shrugged off expectations for a rate hike by midyear after a series of weaker economic data.
“With the risk of a dovish Federal Reserve tone being present, I believe this week could be a volatile one for gold, especially if eased back interest-rate expectations encourage [U.S. dollar] weakness,” said Alex Gurr, analyst at FXTM.
A weaker dollar makes commodities less expensive in terms of other currencies thus giving them a boost.
Gold might also find some shelter demand as talks between Greece and its international creditors continued. Greece has changed its negotiating team in a move that could reduce the influence of its outspoken finance minister, Yanis Varoufakis.
