Investing.com – Gold prices traded higher on Monday, supported by a slump in dollar, which is on track for a fourth session of losses, after G20 financial leaders failed to make a case for open and free global trade while more dovish than expected Fed comments last Wednesday concerning rate hikes continued to support the yellow-metal.
Gold for April delivery on the Comex division of the New York Mercantile Exchange gained $2.55 or 0.21%, to trade at $1,232.85 a troy ounce. The yellow-metal hit a two-week high of $1,235.35 earlier in the session.
In what was a quiet day for top-tier economic data releases, investors continued to focused on the Federal Reserve’s comments last Wednesday, as the U.S. central bank maintained its outlook of two more rate hikes this year against expectations from market participants of three more rate hikes.
Gold is sensitive to moves in U.S. interest rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.
Meanwhile a slump in the dollar also added a layer of support for dollar denominated gold, the greenback is on track for a fourth day of losses, after G20 financial leaders dropped a pledge to keep global trade free and open from a policy statement at the weekend.