Investing.com - Gold prices hovered around the unchanged mark on Monday as market participants looked forward to a busy week for economic data along with the latest Federal Reserve policy decision.
On the Comex division of the New York Mercantile Exchange, gold for December delivery inched up $0.67, or about 0.05%, to $1.272.44 a troy ounce by 6:17AM ET (10:17GMT).
That was just off Friday’s intraday low of $1,263.80, its lowest level since October 6.
Investors will be focusing on the Fed’s interest rate decision out on Wednesday as they look for fresh clues on the likely trajectory of monetary policy. The U.S. central bank is not expected to make a move this week, with markets putting odds at around 98% for the next hike to come at the end of the year, according to Investing.com’s Fed Rate Monitor Tool.
Market watchers are also awaiting U.S. President Donald Trump's decision this week on who will replace Janet Yellen as Fed chair when her term ends in February, with sources saying the pick is likely to be Fed governor Jerome Powell.
On Monday, the U.S. is to release reports on personal income and consumer spending for September, which include the personal consumption expenditures inflation data, the Fed's preferred metric for inflation, at 8:30AM ET (12:30GMT).
In a major week for economic data, market participants will keep an eye on ISM manufacturing and service sector growth, consumer confidence, auto sales,
ADP private sector payrolls, weekly jobless claims, construction spending, monthly trade figures as well as factory orders.
However, the major data release will arrive on Friday with the publication of the October nonfarm payrolls report.
Looking ahead to the busy week, gold found some support from the weaker dollar as market participants took profit in the greenback on Monday after staging its biggest weekly rally this year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, lost 0.16% at 94.57, by 6:17AM ET (10:17GMT), pulling back from a 3-month high of 95.06 reached on Friday.
Gold is sensitive to a stronger dollar as the gains in the greenback make the precious metal more expensive for holders of foreign currency.