Investing.com - Gold futures traded near the highest level in nearly three weeks on Monday, as Federal Reserve’s decision not to hike interest rates boosted demand for the precious metal.
Gold for December delivery on the Comex division of the New York Mercantile Exchange inched up $1.10, or 0.1%, to trade at $1,138.90 a troy ounce during European morning hours.
On Friday, gold rose to $1,141.50, the most since September 1. Futures rallied $30.30, or 3.14%, last week after the Fed left short-term interest rates unchanged, amid concerns over soft inflation and the effects of recent market volatility on the U.S. economy.
The central bank said it wanted to see "some further improvement in the labor market," and be "reasonably confident" that inflation will increase before hiking rates.
Most market experts now expect the Fed will begin raising rates in December.
Gold fell to a five-and-a-half year low of $1,072.30 on July 24 amid speculation the Fed will raise interest rates for the first time since 2006 at some point this year.
The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.
Elsewhere in metals trading, copper for December delivery on the Comex division of the New York Mercantile Exchange rose 1.8 cents, or 0.78%, to trade at $2.405 a pound.
Copper fell to $2.372 on Friday, the lowest level since September 8, as the Federal Reserve’s downbeat assessment of the global economy hurt investor sentiment.
Copper prices have been under heavy selling pressure in recent weeks as fears of a China-led global economic slowdown spooked traders and rattled sentiment. Prices of the red metal sank to a six-year low of $2.202 on August 24.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
In the week ahead, investors will be turning their attention to Wednesday’s index of manufacturing activity from China for a fresh indication on the strength of the global economy.
Market players will also be focusing on U.S. durable goods data as well as reports on U.S. home sales to gauge the likelihood of a near-term interest rate hike.