Gold prices rose on Monday as a softer U.S. dollar helped the metal rebound from its biggest weekly loss this year, but moves were muted before the debut congressional testimony by U.S. Federal Reserve Chair Jerome Powell later this week. We made mention yesterday that we had at least 3 charts that shows gold is on the rise, and yet another one that shows gold is about to ballistic.
Powell’s appearance will be closely watched for clues on the U.S. monetary policy outlook. The dollar index came off its highs, lifting gold after it fell last week to its biggest weekly drop in 2-1/2 months.
- Dollar slides 0.1 pct against a currency basket
- Focus on Fed chief Powell’s congressional appearance
What’s been most interesting this year is the breakdown of what gold is tracking most closely, and that has been the U.S. dollar, Standard Chartered analyst Suki Cooper said, adding that underlying investment interest has been muted.
My main concern with the price run-up that we’ve seen this year is that it hasn’t been accompanied by broad investment demand, she said. “To really breach that $1,360-1,375 level, we need the U.S. retail investor on board as well.