Gold prices rose in Asian trading on Monday amid expectations of a U.S. interest rate cut in September and rising geopolitical tensions in the Middle East, while focus shifted to the Federal Reserve's monetary policy meeting later in the week.
Price Update
Spot gold was up 0.5% at $2,397.65 an ounce by 0025 GMT. U.S. gold futures were up 0.7% at $2,396.70.
The U.S. Federal Open Market Committee meets on July 30-31 and is expected to keep interest rates unchanged at 5.25% to 5.50%. But weaker U.S. jobs data in June, slowing inflation and comments from top Fed officials have pushed the futures market to fully price in a 25 basis point cut in September.
On the geopolitical front, Israel’s security cabinet has authorized Prime Minister Benjamin Netanyahu’s government to decide on the “method and timing” of a response to Saturday’s rocket attack on the Golan Heights that killed 12 children and teenagers. Israel and the United States have blamed the Lebanese militant group Hezbollah for the attack.
Among other precious metals, spot silver rose 0.9 percent to $28.14 an ounce, platinum rose 0.9 percent to $943.49 and palladium rose 1.1 percent to $909.71 an ounce.
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