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FX.co ★ Gold Edges Higher On Dollar Weakness

Gold Edges Higher On Dollar Weakness

Gold edged higher on Monday to hover near key $1,800 level as a softer dollar made the metal more appealing to buyers holding other currencies. Increasing inflation concerns also bolstered bullion's safe-haven appeal.

Spot gold rose 0.4 percent to $1,799.11 per ounce in European trade, while U.S. gold futures were up 0.2 percent at $1,800.05 per ounce.

The dollar index hit a near one-month low as traders continued to focus on the prospect of interest rate hikes and tightening outside of the United States.

On Friday, Federal Reserve Chairman Jerome Powell indicated he is now somewhat more concerned about higher inflation but said it is not yet time to begin raising interest rates.

The next FOMC meeting is due on Nov. 2-3. There is a perception that the U.S. central bank is behind the curve and (will be) forced to act as a consequence of more persistent inflationary pressures.

Elsewhere, the Bank of Japan and the European Central Bank meetings are due on Thursday.

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