Investing.com – Gold prices gained in Asia on Monday with a holiday ahead in the US keeping trade light and the market awaiting more signals on inflation this year as debate grows over the extent of potential price gains globally.
for February delivery settled rose 0.46% to $1,341.30 on the Comex division of the New York Mercantile Exchange.
Financial markets in the U.S. are to remain closed for the Martin Luther King Day holiday. Later this week, China is slated to release what will be closely watched fourth-quarter growth data, while in Europe investors will await monthly inflation data to assess how fast the ECB could start unwinding its asset purchase program.
Last week, gold prices rose for the third straight session on Friday to hit fresh four month highs after hawkish European Central Bank minutes boosted the euro to multi-year highs against the dollar.
The euro rallied to more than three-year highs against the dollar on Friday as the single currency was boosted by hopes that the European Central Bank will begin to scale back its massive monetary stimulus program this year. A dollar-denominated commodity, gold becomes cheaper for overseas buyers when the U.S. currency weakens.
Gold was also boosted after data showing that U.S. consumer prices rose in December, ending the year on a slightly stronger note. The data was seen as unlikely to alter the Federal Reserve’s plans for three rate hikes this year.
Gold struggles to compete with yield-bearing assets like Treasuries as borrowing costs rise.
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Source: Investing.com
