Gold Flat as Investors Wait for Fed Meeting This Week

Investing.com – Gold prices were flat on Monday as investors wait for a flurry of central bank policy decisions this week.

Comex for August delivery rose 0.02% to $1,223.20 a troy ounce as of 11:07 AM ET (15:07 GMT).

The Federal Open Market Committee (FOMC) meets on Tuesday and Wednesday, with a policy decision scheduled for Wednesday afternoon. Investors do not expect the Fed to increase interest rates this week, but there is an .

Higher rates are a negative for gold as the precious metal, which does not pay interest, struggles to compete with yield-bearing assets when rates rise.

Other central banks are also expected to meet this week with the Bank of Japan ending its two-day meeting on Tuesday. The Bank of England is expected to raise interest rates on Thursday, despite Brexit uncertainty.

The precious metal was also boosted by a fall in the U.S. dollar after U.S. President Donald Trump threatened to shut down the government if he does not get funding for a border wall.

Gold falls as the dollar rises, as it is denominated in the U.S. currency and is sensitive to moves in the dollar.

The , which measures the greenback’s strength against a basket of six major currencies, fell 0.42% to 94.07.

Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.

Other metals were higher on the Comex, with rising 0.24% to $15.530 a troy ounce. Among other precious metals, increased 0.24% to $833.70, while jumped 0.58% to $923.80 an ounce. futures fell 0.11% to $2.799 a pound.

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