Gold prices climbed higher on Monday as the dollar weakened amid expectations the Federal Reserve is unlikely to aggressively hike interest rates at the upcoming meeting later this month.<\/p>\n
Policymakers including Fed Governor Christopher Waller, as well as regional Fed Presidents Mary Daly, Loretta Mester, James Bullard, and Raphael Bostic, suggested that a 75 basis-point hike would be appropriate for this month.<\/p>\n
Worries about inflation have faded a bit as well after a survey report from the University of Michigan last week showed inflation expectations eased to a one-year low.<\/p>\n
The dollar index dropped to 106.89, and despite having recovered to 107.25, remains firmly down with a loss of more than 0.7%.<\/p>\n
Gold futures for August ended higher by $6.60 or about 0.4% at $1,710.20 an ounce.<\/p>\n
Silver futures for September ended up by $0.246 at $18.840 an ounce, while Copper futures for September settled at $3.3460 per pound, gaining $0.1120.<\/p>\n
In U.S. economic news, the National Association of Home Builders released a report showing a substantial deterioration in U.S homebuilder confidence in the month of July.<\/p>\n
The report showed the NAHB\/Wells Fargo Housing Market Index plunged to 55 in July from 67 in June. Economists had expected the index to edge down to 66.<\/p>\n
The HMI showed its second biggest single-month drop after a 42-point nosedive in April 2020, tumbling to its lowest level since May 2020.<\/p>\n
Traders now look ahead to the European Central Bank’s monetary policy meeting on Thursday. The ECB is expected to hike interest rate by 25 basis points and signal a 50-basis point hike in September.<\/p>\n
The Bank of Japan, which is scheduled to meet on Wednesday and Thursday, is expected to keep its ultra-loose money policy in place. <\/p>\n