Gold futures edged higher Monday, attempting to build on a rally that pushed the yellow metal above $1,300 an ounce last week as traders prepare for this week’s meeting of Federal Reserve policy makers and keep an eye on geopolitical developments, including the U.K.’s efforts to reach a deal on leaving the European Union, and the direction of the U.S. dollar.
Gold for April delivery GCJ9, +0.06% on Comex rose $2.70, or 0.2%, to $1,305.60 an ounce, while May silver SIK9, +0.20% was up 3.1 cents, or 0.2%, to $15.355 an ounce.
Gold prices “are a tad higher for a second consecutive session, as the ‘big’ dollar slipped after recent toned-down U.S. data increased chances that the Fed will signal a ‘dovish’ policy stance this week,” said Dean Popplewell, vice president of market analysis at Oanda, in a note.
The ICE U.S. Dollar Index DXY, -0.01% a measure of the U.S. currency against a basket of six major rivals, was off 0.2%. A weaker dollar can be a boon to commodities priced in the unit, making them less expensive to users of other currencies.
The Fed’s rate-setting committee will conclude a two-day meeting on Wednesday, with investors focused on a policy statement, remarks by Fed Chairman Jerome Powell and the collection of policy makers’ rate forecasts known as the “dot plot.” Investors expect the Fed to maintain the dovish tone its struck in January, when it effectively put its rate-hiking plan on pause to take a wait-and-see approach.
Read: Fed doesn’t want anyone paying attention to the dot plot, but here are 3 things investors don’t wont’ want to miss
Gold rallied Friday, leaving it 0.3% higher for the week, while silver lost 0.2%.
Analysts continue to keep an eye on U.S.-China trade developments, with news reports over the weekend saying that a meeting between President Donald Trump and Chinese leader Xi Jinping was unlikely to happen until June. A meeting had previously been expected this month.
Investors will also keep an eye on Brexit, with Prime Minister Theresa May expected to bring her twice-rejected proposal for an agreement dictating the U.K.’s relationship with the EU up for a third vote this week. U.K. lawmakers last week rejected the prospect of exiting without an agreement and called for an extension of the country’s Brexit date from March 29 — a move that will require the unanimous approval of the EU’s other 27 members.
In other metals trade, April platinum PLJ9, +0.19% rose $3.60, or 0.4%, to $835.40 an ounce, June palladium PAM9, +1.15% is up $2.40, or 0.2%, to $1,520.90 an ounce.
May copper HGK9, +0.02% rose 2.05 cents, or 0.7%, to $2.9265 a pound.
