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Gold inched higher in cautious trade Monday as the dollar dipped for the first time in six sessions amid improved risk appetite.

Spot gold rose 0.4 percent to $1,788.31 per ounce, while U.S. gold futures were up 0.4 percent at $1,790.35.

Some of the recent weakness in commodities abated despite persistent worries about the COVID-19 Delta variant hampering economic growth.

Chinese technology stocks rebounded from a prolonged selloff and Euro-area purchasing managers’ indexes signaled a strong recovery, helping lift risk appetite in global markets.

The dollar’s dip comes after Dallas Fed President Robert Kaplan on Friday said he might reconsider the need for an early start to tapering if the virus harms the economy.

Investors look ahead to the Jackson Hole symposium Thursday for additional insights about the Fed’s taper talks.

There is growing support within the Fed to announce the tapering of bond purchases sometime between October and December in contrast to the European Central Bank which is under pressure to add more stimulus.

U.S. Treasury Secretary Janet Yellen endorsed Jerome Powell for a second term as Fed chair, a move that could reduce uncertainty about the path for monetary policy.


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