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Gold rises cautiously with Fed meeting in focus
Gold prices rose on Monday, rebounding from a 1-week low, as the US dollar fell against its peers, ahead of the US Federal Reserve meeting tomorrow.
Gold prices rose 0.4% to $1,788.16 an ounce, after opening at $1,780.82, and hit a high of $1,779.06.
Gold closed lower by 0.8% on Friday, and hit a 1-week low of $1,771.86 an ounce, after strong personal consumption data in the US.
Gold prices gained 1.5% last month, the first monthly gain in 3 months, after the US Federal Reserve's meeting, thanks to improved demand levels in China and India, and strong safe-haven demand.
On Monday, the dollar index fell by about 0.1%, to give up its highest level in three weeks at 94.31 points, reflecting the halt in the rise of the US currency levels against a basket of major and minor currencies, which is in favor of the rise in gold and other metals prices denominated in the US dollar.
The Fed is expected to tighten its monetary policy this week and cut the bonds purchases program before moving on to hiking interest rates next year.
Gold stocks at the SPDR ETF remained unchanged on Friday, with the total at 982.14 metric tonnes.
Euro tries to recoup from two-week lows
Euro rose in European trade away from two-week lows against dollar in an attempt to recoup some recent losses on mounting concerns of divergent US and European policies, and amid prospects of policy tightening by the Fed.
EUR/USD rose 0.1% to 1.1575, with an intraday low at 1.1545, after closing down 1.05% on Friday, the first loss in three days, and the largest since June 16, marking two-week lows at 1.1535.
Euro lost 0.75% in the last week against dollar, the first weekly loss in three weeks on mounting concerns of divergent European and US policies.
The Fed is expected to tighten its monetary policy this week and cut the bonds purchases program before moving on to hiking interest rates next year.
Estimates now point to a rate hike of 0.25% to 0.50% by June 2022, with markets pricing another hike in December 2022.
US stocks close at record highs, log weekly and monthly gains
US stocks rose on Friday, lifted by strong business results, in addition to the rise in the tech and energy sectors.
The first reading of the US GDP for the third quarter showed a growth of 2%, missing forecasts of 2.6%, which is the lowest pace of quarterly growth in nearly 12 months.
The market is awaiting the Federal Reserve's meeting to decide on monetary policy amid the high inflation rate
US President Joe Biden will discuss in the coming hours supply chain problems and rising energy prices during the G-20 summit.
To the oil market, WTI crude November futures rose 0.9% or 76 cents, and closed at $83.57 a barrel, and posted a weekly loss of 0.2%, but a monthly gain of 11%.
Brent December futures rose 0.1% or 6 cents, and closed at $84.38 a barrel, with a weekly loss of 1.3% and a monthly gain of 7.7%.
As for stocks, Dow Jones rose 0.2% or 89 points, and closed at 35,918, and posted a weekly gain of 0.4% and monthly gains of 5.8%, with a day high of 35,852, and a low of 35,633.
S&P 500 rose 0.2% or 9 points to 4,605 and posted a weekly gain of 1.3% and monthly gains of 6.9%, after hitting a high of 4,608 and a low of 4,567 points.
Nasdaq rose 0.3% or 50 points to 15,498, and registered a 2.7% weekly gain and monthly gains by 7%, with a high of 15,504 and a low of 15,323.