REUTERS: Gold prices gained on Monday as investors awaited US inflation data due this week for clues on the Federal Reserve’s next monetary policy moves.
Spot gold was up 0.5 per cent at $2,644.91 per ounce, as of 0238 GMT. Bullion fell nearly 1 per cent last week.
US gold futures added 0.3 per cent to $2,666.80.
Gold is supported by headlines that China’s central bank is back to purchasing gold in November which could be “good news for gold bulls” in knowing that they have the People’s Bank of China (PBOC) behind their back to underpin some strength for bullion prices, IG market strategist Yeap Jun Rong said.
According to the CME Group’s FedWatch Tool, markets currently see an 83.4 per cent chance of a 25-basis-point rate cut this month. Lower rates decrease the opportunity cost of holding non-yielding bullion.
Federal Reserve officials appeared on track to cut interest rates this month after data showed the US labor market remained strong but continued to cool in November.
On the geopolitical front, Syrian rebels seized the capital Damascus unopposed on Sunday after a lightning advance that sent President Bashar al-Assad fleeing to Russia after a 13-year civil war and six decades of his family’s autocratic rule.
Gold is often seen as a safe-haven asset during times of economic or political uncertainty.
Spot silver gained 0.4 per cent to $31.08 per ounce, platinum rose 0.5 per cent to $934.75 and palladium added 0.7 per cent to $963.00.
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