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Gold Up Over Weaker Dollar, Investors Await Fed Policy Decision

By Gina Lee – Gold was up on Monday morning in Asia as the dollar weakened and investors await the U.S. Federal Reserve policy decision due to be handed down later in the week.

Gold futures edged up 0.15% to $1,780.40 by 12:55 AM ET (4:55 AM GMT). The dollar, which usually moves inversely to gold, edged down on Monday.

The Fed’s decision, to be handed down on Wednesday, is widely expected to keep to the status quo. Investors will, however, monitor Fed Chairman Jerome Powell’s replies to questions over whether an improving labor market and rising COVID-19 vaccinations could lead to a withdrawal of monetary easing.

In Asia, the Bank of Japan will hand down its own policy decision on Tuesday.

Investors injected $16.4 billion into global bond funds and $14.9 billion into money market funds for the week ending Apr. 21 according to Refinitiv Lipper data. Investors also turned to the safe-haven yellow metal as the number of COVID-19 cases continues to increase globally.

In India, ever-increasing numbers of COVID-19 cases and the ensuing restrictions kept gold buyers away.

Meanwhile, gold production in Zimbabwe also decreased 30% to 3.98 tons in the first quarter of 2021.

Also on the supply front, mining companies Newmont and Barrick on Friday announced that its partnership in Chile will work with local communities to boost the development of its Norte Abierto gold-copper project.

In other precious metals, silver edged up 0.2% and platinum was up 0.3%. Palladium inched up 0.1% but remained below the record hit during the previous week.

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