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Gold treads water at start of busy week

Published 21/08/2017, 08:08
© Reuters.  Gold prices little changed at start of busy week
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Investing.com - Gold prices were little changed on Monday, as market players looked ahead to this week's annual meeting of top central bankers and economists in Jackson Hole, Wyoming, where the heads of the U.S. and European central banks will be making keynote speeches.

Their comments will be closely watched for fresh policy signals from the world’s two most powerful central banks.

Traders will also keep an eye out on U.S. housing and durable goods data to gauge the strength of the world's largest economy and how it will impact the Federal Reserve's view on monetary policy.

Markets remain skeptical the Fed will raise rates a third time this year due to worries over the subdued inflation outlook, but it is widely expected to start the process of reducing its balance sheet by September.

Investors are likely to continue to fret over the latest headlines coming out of Washington after political developments shook the market last week.

The deepening turmoil surrounding President Donald Trump's administration intensified doubts that he would be able to follow through on his campaign promises for tax cuts, deregulation and fiscal stimulus.

Comex gold futures ticked up $1.10, or around 0.1%, to $1,292.70 a troy ounce by 3:05AM ET (0705GMT).

It rose to its highest since November at $1,306.90 on Friday, before pulling back to settle lower for the session and the week after reports that senior White House advisor Steven Bannon was leaving his post.

Elsewhere on the Comex, silver futures dipped 2.2 cents, or around 0.1%, to $16.97 a troy ounce.

Among other precious metals, platinum added 0.1% at $983.40, while palladium gained 0.3% to $929.38 an ounce.

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