Investing.com – Gold prices pared gains on Monday, but the precious metal remained supported as sentiment on the greenback became more vulnerable ahead of this week’s highly-anticipated U.S. inflation data.
Comex were up 0.42% at $1,321.1 a troy ounce by 08:15 a.m. ET (12:15 GMT), after climbing to $1,328.8 earlier in the day.
Market participants were eyeing this week’s U.S. inflation data for further clues on how fast the Federal Reserve will raise interest rates this year.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 90.18
Gold is sensitive to moves in both U.S. rates and the dollar. A weaker dollar makes gold less expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
The greenback had strengthened broadly after the U.S. Congress early Friday morning, ending a brief government shutdown.
The agreement is set to boost federal spending by almost $300 billion and suspend the debt ceiling for a year.
Government activities were temporarily shut down when a midnight deadline to pass the U.S. budget deal was missed on Thursday due to a prolonged speech by Senator Rand Paul, who said the bill would “loot the Treasury.”
Elsewhere on the Comex, rallied 1.28% to $16.35 a troy ounce.
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Source: Investing.com
