Gold rises as oil retreats on pause in US-Iran strikes; Fed rate decision in focus
GLD•China gold imports and other metals
Meanwhile, China's net gold imports via Hong Kong more than doubled year-on-year in June, but slipped more than 5% from the previous month, data from Hong Kong's Census and Statistics Department showed on Monday.
Among other metals, spot silver XAG= rose 0.5% to $58.44 per ounce, platinum XPT= gained 2% to $1,620.34, and palladium XPD= climbed 3.5% to $1,286.25.
Fed decision and inflation data are in focus
Investors now await the U.S. Federal Reserve's interest rate decision on Wednesday, with traders seeing a 62% chance of policymakers holding interest rates steady, CME FedWatch data showed.
However, they are pricing in about an 82% chance of a U.S. rate hike in September.
Investors also await the U.S. Personal Consumption Expenditures data for June, the Fed's preferred inflation gauge, due on Thursday, for further cues on monetary policy.
Gold gains as oil retreats on pause in US-Iran strikes
Gold rose on Monday as a pause in hostilities between the United States and Iran sent crude oil prices to a one-week low, easing inflation concerns ahead of the U.S. interest rate decision this week.
Spot gold XAU= was up 0.5% at $4,074.22 per ounce by 1:45 p.m. EDT (1745 GMT), while U.S. gold futures GCcv1 for August delivery settled around 0.2% higher at $4,077.00.
The U.S. dollar index .DXY softened 0.1%, making greenback-priced bullion more affordable for buyers overseas.
"Primarily what we're seeing is the oil market is down from over $100 last week to $90, and it's driving the interest rate outlook lower," said Bart Melek, global head of commodity strategy at TD Securities.
