Gold Prices Show Modest Increase

Gold prices experienced a slight rise on Monday, continuing the gains seen last week. The recent rally in the U.S. dollar that has negatively impacted the price of the yellow metal appeared to slow down ahead of an upcoming Federal Reserve policy meeting.

Price Action

• Gold futures for December delivery (GCZ23, -0.08% GC00, -0.08%) increased by $1.70, or 0.1%, reaching $1,948 per ounce on Comex.
• Silver futures for December delivery (SIZ23, -0.24% SI00, -0.24%) remained flat at $23.39 per ounce.
• Platinum futures for October (PLV23, +0.70%) gained $7.30, or 0.8%, reaching $936 per ounce, while palladium futures (PAZ23, -0.38%) dropped $6.20, or 0.5%, reaching $1,246.50.
• Copper for December delivery (HGZ23, -0.22%) declined by 0.1% to $3.80 per pound.

Market Drivers

On Monday, precious metals showed limited movement with Japanese traders absent due to a holiday and global investors anticipating remarks from Federal Reserve Chairman Jerome Powell.

According to Jim Wyckoff, senior analyst at Kitco.com, "Gold and silver prices are slightly higher in early U.S. trading Monday. The precious metals markets are taking a pause at the start of this week in anticipation of the key FOMC meeting."

The two-day September policy meeting of the Federal Reserve concludes on Wednesday, and it is widely expected that the central bank will maintain interest rates at their current levels.

The ICE U.S. Dollar Index DXY, which measures the strength of the greenback against a basket of other currencies, remained unchanged at 105.34.