Gold prices moved higher on Monday, pushing the most active gold futures contracts to a firm close at a near 3-week high, as the dollar shed ground.
Traders looked ahead to the upcoming Jackson Hole Symposium, scheduled to take place virtually on Friday. Federal Reserve Chairman Jerome Powell’s speech at the symposium is likely to provide clues about when the central bank will start tapering its asset buying program.
The dollar index dropped to 92.99, losing more than 0.5%, amid increased risk appetite. Investors also reacted to Dallas Fed President Robert Kaplan’s comments on Friday that he might reconsider the need for an early start to tapering if the virus harms the economy.
Gold futures ended up by $22.30 or about 1.3% at $1,806.30 an ounce, the highest settlement since August 5.
Silver futures for September ended higher by $0.544 or about 2.4% at $23.656 an ounce, while Copper futures settled at $4.2370 per pound, gaining $1.000 or 2.4%.
In economic news, Eurozone private sector logged one of the strongest growth seen over the past two decades in August as the further reopening of the economy underpinned expansion in the services activity, flash survey results from IHS Markit showed.