Investing.com – Gold prices started the week on the front-foot on Monday, hitting their highest level since September as the dollar languished at three-year lows against a basket of currencies.
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.
Comex were at $1,343.70 a troy ounce by 3:05AM ET (0805GMT), up $8.70, or about 0.7%, from the last session’s closing price. It hit the best level since Sept. 8 at $1,345.00 earlier in the session.
There will be no floor trading on the Comex on Monday because of the Columbus Day holiday in the U.S. All electronic transactions will be booked with Tuesday’s trades for settlement.
Gold prices tallied a fifth week of gains in a row last week, rising 1.4%.
The U.S. dollar early on Monday as investors continued to price in the risk of tighter policies in Japan and Europe.
The , which tracks the greenback against a basket of currencies, slipped 0.1% to 90.53 after falling as far as 90.39 at one point, its lowest since January 2015.
Against the , the dollar slipped to a six-week low at 110.73, while the was up at a three-year peak of 1.2203 against the greenback.
, the U.S. will see a relatively quiet week in terms of economic releases, with a report on the housing sector expected to draw the most attention.
Besides the housing-related data, this week’s calendar also features surveys on manufacturing conditions in the Philadelphia and New York regions as well as industrial production figures and preliminary Michigan consumer sentiment figures.
The Fed’s Beige Book, as well as speeches from Chicago Fed President Charles Evans, Cleveland Fed Boss Loretta Mester and Fed Governor Randall Quarles, will also be in focus.
The majority of economists believe that the Federal Reserve will hike rates in March with a second move higher arriving in June, according to Investing.com’s .
In other metals action, rallied 25.0 cents, or about 1.5%, to $17.39 a troy ounce.
soared 2.1%, to an all-time peak of $1,128.60 an ounce, thanks to soaring demand for the auto industry.
Sister metal meanwhile tacked on 0.9% to $1,004.80 an ounce.
March rose 2% to $3.281 a pound.
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Source: Investing.com
