Gold prices climbed Monday, on track for a third consecutive gain, as reduced expectations that the U.S. Federal Reserve will soon taper its bullion-friendly stimulus program boosted the metal at the expense of the U.S. dollar.
As of 03:16 ET, gold for immediate delivery climbed 1.81 percent or 23.47 points to trade at $ 1,317.23 after opening at $1,296.19, having earlier hit a high of $1,322.86, and a low of $1,296.00.
Dollar-denominated gold prices advanced after dollar fell against key rivals as Federal Reserve chairman Ben Bernanke’s comments on stimulus lacked any confirmation on when the Fed’s will start scaling back its stimulus.
Bullion's have been pressured by expectations the Fed’s will pare back its $85 billion-per-month bond purchase program. The Fed's quantitative easing schemes have boosted gold’s appeal as a hedge against inflation
Dollar index, which measures the strength of the green Benjamin in front of a basket of major currencies after the recent sell-off that started with Ben Bernanke’s dovish comments last week. The USDIX fell on Monday to trade around 82.57 after opening at 82.69, hitting a high of 82.72 and a low of 82.48.
Other precious metals tracked gold higher where:
- Silver gained 2.44% to trade around $ 19.98
- Platinum went up 0.59% to $ 1,438.55
- Palladium inched 0.09% up to $ 750.70
Source Oilngold
