Gold Gains Slightly In Asia With Fed Leadership Changes Eyed
Gold edged higher in Asia on Monday with the market looking ahead to a change of guard at the Federal Reserve this week and setting the stage for the December meeting widely expected to hike rates.
A weaker dollar last week also helped spur demand.
Gold futures for December delivery rose 0.11% to $1,288.70 a troy ounce on the Comex division of the New York Mercantile Exchange. Copper for December delivery fell 0.70% to $3.169 a pound.
U.S data on personal income and spending, which includes the personal consumption expenditures inflation data, the Fed's preferred metric for inflation, will also be closely watched.
Last week, gold prices slid lower on Friday as some investors took profits at the end of the week, but losses were held in check by the weaker dollar.
A weaker dollar typically tends to support gold, which is denominated in the U.S. currency and becomes more affordable to foreign buyers when the dollar declines.
The dollar remained on the back foot after Wednesday’s minutes of the Federal Reserve’s November meeting showed that some officials were concerned inflation would stay below the bank's 2% target for longer than expected.
The minutes echoed comments by Fed Chair Janet Yellen earlier in the week that she was uncertain about the inflation outlook.
While a rate hike in December is still almost fully priced in, investors pared back expectations for further rate hikes in 2018, sending the dollar lower.
A weaker dollar and a pickup in global growth have pushed copper prices up almost 27% this year.
Along with new leadership at the Fed, investors await comments from a number of Fed speakers, including both the current chair and next head of the U.S. central ban