Gold prices inched higher on Monday as U.S. Treasury yields fell slightly after the release of mixed Chinese data and ahead of this week’s Federal Reserve meeting.

Spot gold edged up 0.1 percent to $1,729.96 per ounce, while U.S. gold futures were up half a percent at $1,727.95.

Official data showed that industrial production in China jumped 35.1 percent year-on-year in the period including January and February – beating forecasts for an increase of 30 percent.

Retail sales spiked an annual 33.8 percent to exceed expectations while weaker-than-expected investment growth and rise in unemployment disappointed markets.

The dollar held firm ahead of the Fed decision due to be announced Wednesday after the FOMC meeting, with traders looking for the U.S. central bank to address the recent spike in bond yields.

Treasury Secretary Janet Yellen said last week that U.S. inflation risks remain subdued despite the Biden administration stimulus.

Traders also keep an eye on U.S. reports on retail sales, industrial production, housing starts, and regional manufacturing activity this week for clues on the economic outlook.

The Bank of England rate decision is due on Thursday and no change in policy is expected.

The Bank of Japan monetary policy decision is slated for Friday, with economists expecting a review of the central bank’s monetary policy strategy.

The material has been provided by InstaForex Company – www.instaforex.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here