Gold prices moved higher on Monday, rebounding a bit from previous week’s losses, as the dollar shed some ground against its major rivals, and the yields on long-term U.S. Treasury Notes fell.
The dollar index dropped to 91.83, losing nearly 0.5%. The index had climbed to 92.41 on Friday, hitting its highest level since mid-April.
Gold futures for August ended up by $13.90 or about 0.8% at $1,782.90 an ounce. Gold futures had shed nearly 6% last week, weighed down by a strong dollar after the Federal Reserve signaled interest rate hikes by 2023 and said policymakers had already started talking about tapering the bank’s bond buying program.
Silver futures for July ended higher by $0.056 at $26.025 an ounce, while Copper futures for July settled at $4.1840 per pound, up $0.0270 from the previous close.
St. Louis Fed President James Bullard said on Friday that inflation risks may force the Fed to raise rates as early as next year. The rapid economic growth is bringing faster-than-expected inflation, which could warrant a liftoff in late 2022, Bullard said in an interview with CNBC.
Separately, Minneapolis Federal Reserve President Neel Kashkari said on Friday he wants to keep the Fed’s benchmark short-term interest rate near zero at least through the end of 2023.
The European Central Bank President Christine Lagarde said reiterated today that the central bank will continue to support the eurozone economy by continuing with its accommodative monetary policy.