Gold prices edged higher in cautious trade on Monday as investors braced for a week full of central bank meetings in the United States, Britain and Australia.
Spot gold edged up 0.2 percent to $1,786.04 per ounce, after having touched a more than one-week low on Friday. U.S. gold futures for December delivery were up 0.2 percent at $1,787.30 per ounce.
The Reserve Bank of Australia (RBA) holds its monthly policy meeting on Tuesday and speculation is rife that it will signal an earlier hike in cash rates after data last Wednesday showed core inflation jumped back into the RBA’s 2-3 percent target for the first time since 2015.
The Federal Reserve’s two-day policy meeting ends on Wednesday, with investors looking for clues on the timing of its first interest rate hike since December 2018.
Fed Chair Jerome Powell has already acknowledged substantial further progress on inflation (price stability) and also maximum employment for QE tapering.
On Thursday, attention turns to the Bank of England policy meeting. Market participants are pricing in a rate hike to curb inflation but economists narrowly predict no change.