Insignia Consultants | Gold rises on dollar weakness, US Fed meeting in focus
Gold rises on dollar weakness, US Fed meeting in focus
May 5(Reuters) - Gold prices rose more than 1% on Monday, helped by a weaker dollar, with investors looking forward to more details on the U.S.-China trade negotiations and the Federal Reserve's policy meeting later this week.
Spot gold rose 1.8% to $3,298.09 an ounce, as of 0928 GMT, after posting its worst week since February last week. U.S. gold futures climbed almost 2% to $3,306.50.
"The U.S. dollar is slowing down and that is a positive for gold, more investors are betting that the Fed will cut rates relatively soon after last week's US GDP data came below expectation and now with what's going on with oil," said Carlo Alberto De Casa, external analyst at Swissquote.
Although the Fed is widely expected to leave rates steady on Wednesday, market focus will be on economic projections, more clarity on future rate cuts and speeches by several Fed officials.
U.S. President Donald Trump said he will not remove Jerome Powell as Fed Board Chairman before his term ends in May 2026, while reiterating his call for the Fed to cut interest rates.
