Global dollar weakness pushes gold prices higher at open

Gold prices rose on Monday after two sessions of losses as the dollar weakened, but rising expectations of a tightening of US monetary policy boosted Treasury yields and kept bullion gains in check.

Spot gold was up 0.1% at $1,819.72 an ounce by 10:45 GMT, while US gold futures were up 0.2% at $1,820.60.

“The euro is slightly firmer against the dollar, which supports gold and other precious metals. On the other hand, yields have risen slightly, which is cushioning the impact of a weaker dollar.said Peter Fertig, a commodity research analyst at Quantitative.

US markets are closed on Monday for a holiday.

Attention now turns to the Federal Reserve meeting on January 25-26, after policymakers signaled last week that they would start raising interest rates in March to rein in rising inflation.

“Market participants are likely to refrain from buying gold ahead of the Fed’s first rate hike”, analysts at Commerzbank wrote in a note. “They may be hoping that the Fed meeting next week will give them clearer signals that it will start its rate hike cycle in March”.

Among other precious metals, silver rose 0.3% to $23.02 an ounce; platinum fell 0.2% to $968.48; and palladium gained 0.6% to $1,888.76.